 "Maharashtra govt proposal to exempt small vehicles from toll tax")
The Bharatiya Janata Party-led government in Maharashtra has proposed exemption of small vehicles, including cars and utility vehicles, from toll tax on road projects over Rs 200 crore implemented on build-operate-transfer (BOT) basis.
Light vehicles will enjoy similar relief on roads to be developed on annuity basis, and also on roads to be completed by the state Public Works Department (PWD), with the project cost below Rs 200 crore.
Light vehicles will enjoy similar relief on roads to be developed on annuity basis, and also on roads to be completed by the state Public Works Department (PWD), with the project cost below Rs 200 crore.
State PWD minister Chandrakant Patil told Business Standard, "In case of BOT projects above Rs 200 crore, no toll tax will be recovered from small vehicles. The government may increase toll tax on big vehicles and also make budgetary provision to make up the loss of the road developers.
"Further, there will be no toll on roads up to Rs 200 crore to be developed by PWD on its own. In such cases, PWD will incur the entire expenditure. This apart, the government will also adopt another model where roads above Rs 200 crore will be developed on annuity basis where the toll will be written off for small vehicles and road developer will start getting payment after two years. The government will bear some burden for exempting small vehicles on roads to be developed on annuity basis too.''
To fulfil the poll promise of making Maharashtra toll-free, the government has already closed down 12 toll collection booths, and exempted small vehicles from toll at 53 locations, where roads were developed by the PWD and the state-run Maharashtra State Road Development Corporation (MSRDC) on a BOT basis.
The government has made an allocation of Rs 800 crore this financial year to pay to the contractors towards revenue loss. Maharashtra has a road network spread over 260,000 km.
Patil added that the government will launch 5,000 km of road projects under these categories from October onwards.
''Of the 5,000 km, road projects of 1,000 km will be launched on a single day in October. Of these proposed roads to be undertaken, roads worth Rs 2,500 crore have budgetary support while the balance Rs 3,000 crore will be completed on BOT, annuity basis and also from government support,'' he informed.
According to the minister, the government is asking the Centre for similar exemption to small vehicles on roads already constructed by the National Highways Authority of India.