Parliament panel raises ‘perpetual tolling', seeks new tariff authority
The committee said the practice was formalised by a 2008 amendment to the Fee Rules allowing for 'perpetual tolling' even after project costs are recovered. While toll rates are revised annually based on a fixed 3 per cent increment and Wholesale Price Index (WPI) adjustments, there is no independent mechanism to assess if these charges are justified by actual operation and maintenance costs, the committee said.
'…the Committee observe that the concept of tolling in perpetuity was first introduced through an amendment to the Fee Rules in 2008, allowing continued collection of user fees even after the recovery of project costs. This provision was further clarified and codified through the 2023 amendment to the Fee Rules, which explicitly permits tolling to continue beyond the end of the concession period, thereby formalising a regime of perpetual tolling,' said the Public Accounts Committee (PAC) in its report submitted to the Parliament on Tuesday.
According to the report, the Ministry of Road Transport and Highways (MoRTH) acknowledged this, adding it has initiated a study with NITI Aayog to revise the user fee determination framework, including base rates, inflation indexing, and concession structures.
The PAC recommended that the ministry should establish a tariff authority to ensure transparency and fairness in toll fixation, collection, and regulation.
'This authority should be mandated to review and determine the periodicity of toll revisions based on certain parameters…The Committee desires that toll collection on any highway stretch must be rationalised and substantially reduced once capital and routine maintenance costs have been recovered. Any continuation of tolls beyond this point should be permitted only if clearly justified and approved by the proposed independent oversight authority,' it said.
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