Annual increase in highway toll fee

CABINET DECIDES

The Cabinet Committee on Economic Affairs on Thursday gave its approval to the National Highways Fee (Determination of Rates and Collection) Rules, 2008. The rules are aimed at improving the viability of road projects to be implemented under the public-private partnership (PPP) mode, through an annual increase in fee.

The new policy will bring uniformity in fee for public-funded and private investment projects. Currently, toll revision is being done once in five years for all public-funded projects, while annual revision is being done for all privately funded highway projects, based on the wholesale price index (WPI). The new rules are expected to significantly increase the government’s revenue from toll collection.

The government generated a toll revenue of Rs 1,416 crore during the last financial year from the public-funded road projects. Moreover, these rules will enable levying of fee for use of a two-lane section of the national highway on which the average investment for upgradation has exceeded Rs 1,0000,000 crore per km.