Ahead of elections, Mumbai entry points go toll-free for light vehicles

Toll collection contracts could demand fresh negotiations and adjustments

The Maharashtra state government announced a toll exemption for all light motor vehicles (LMVs) crossing Mumbai’s five entry points on Monday. While the move is expected to help decongest these locations, analysts indicate that tolling concession agreements will need to be addressed.

Ahead of the Maharashtra Assembly polls, the Eknath Shinde state government has announced a full toll waiver for LMVs at all five toll booths for entry into Mumbai. The waiver will take effect from midnight on Monday.

According to a PTI report, 280,000 LMVs are expected to benefit from the Maharashtra government’s toll waiver daily.

PTI reported that an official from the Maharashtra State Road Development Corporation (MSRDC) said that 360,000 vehicles pass through the five toll booths located on LBS Road and the Eastern Express Highway at Mulund, Airoli Creek Bridge, the Western Express Highway at Dahisar, and Vashi Creek Bridge each day. Of these, an average of 280,000 are LMVs.

MSRDC is the nodal agency for these five entry points, and according to data available on the agency’s website, the tolling concession agreements are with MEP Infrastructure Developers. According to the company’s submission of the monthly toll collection statement for January 2024, it collected a total toll amounting to Rs 45.31 crore.

Executives at MEP Infrastructure could not be reached for immediate comment.

“The state authority will need to settle contractual obligations with the parties to whom they have awarded toll collection concession agreements. This could be a long-drawn-out process, arriving at either a settlement formula through monetary payment or an extension of the concession period to collect toll from non-passenger vehicles on the same stretch,” said Rajashree Murkute, senior director and head of the infrastructure sector at CARE Ratings. She noted that roughly 65 per cent of the passenger car units passing through Mumbai’s entry points are passenger vehicles, and “some of these concession agreements may be nearing expiration”.

MSRDC appointed MEP Infrastructure as a concessionaire through a letter of award on October 28, 2010.

Regarding the possibility of extending this exemption to other parts of the state, she said, “I do not expect similar exemptions for other regions immediately, as the correlation with the reason for severe congestion may not apply to those cities; yet, it remains to be seen how the situation unfolds.”

(With inputs from PTI)

Open Roads
 

- Toll waiver at all five toll booths for entry into Mumbai

- 280,000 light motor vehicles are expected to benefit daily

- MSRDC is the nodal agency for these five entry points

- Tolling concession agreements will need to be settled

- The tolling concession agreements for these are with MEP Infrastructure Developers

- The company has collected an overall toll worth Rs 45.31 cr