Nitin Gadkari's big announcement: Huge concession in new toll policy
What's the story
Nitin Gadkari, India's Union Minister for Road, Transport and Highways (MoRTH), has announced a new toll policy focusing on reducing the burden on motorists. The minister said that he would introduce it before April 1, which will provide significant concessions that would end public complaints over toll charges. However, he didn't reveal more details due to the ongoing Parliament session.
Minister's remarks
Gadkari's statement on upcoming toll policy
Gadkari assured the government is committed to relieving car users of toll-related troubles. "Before April 1, I am going to declare such a policy on tolls that neither you will ask any question about tolls nor people will crib about the toll charges because there will be so much concession." "The national policy is ready...[but] I can't share more details..," said Gadkari.
Background
Toll tax debate in India
Toll tax has been a subject of heated debate in India. Critics frequently question the exemptions accorded to certain sections, while commoners continue to suffer high charges. In November 2024, the Ministry of Road Transport & Highways (MoRTH) reported that ₹1.44 lakh crore had been collected as user fees at toll plazas operating under the Public Private Partnerships (PPP) model on National Highways since December 2000.
Fee structure
Government's explanation on user fee collection
MoRTH clarified that user charges at fee plazas on National Highways are collected as per NH Fee Rules, 2008. "All user fee plazas on National Highways are established as per the provision of National Highways Fee (Determination of Rates and Collection) Rules, 2008 and the respective Concession Agreement," it said. "The Government by notification in the official Gazette, levies user fee on National Highways for the use of any section of National Highway, in accordance with NH Fee Rules."
Innovation
New features
Gadkari announced in the Lok Sabha on Thursday that the government plans to implement an annual pass system to replace toll collection on national highways, aiming to enhance operational efficiency and provide greater convenience for road users. MoRTH has issued a Request for Proposal to implement an Automatic Number Plate Recognition (ANPR) FASTag System for barrier-free tolling at the Gharonda, Choryasi, Nemili, UER-II, and Dwarka Expressway plazas, with potential phased implementation at other plazas based on results from these projects.