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Time of India
08-07-2025
- Automotive
- Time of India
Toll revenue on fast track: Collections up almost 20%; could breach Rs 80,000 crore this year
AI image Toll collections across India's national highways rose sharply by 19.6 per cent in the first quarter of the current financial year, touching an all-time high of Rs 20,681.87 crore. This marks a jump from Rs 17,279.86 crore collected during the same period last year, driven by a combination of revised toll rates, new toll roads, and a low base effect. According to official data, this is more than double the 9.49 per cent growth recorded in the April-June quarter of FY25. The number of highway users also saw a significant uptick, with electronic toll transactions rising 16.2 per cent to 1,173.30 million compared to 1,009.87 million a year ago. If the current pace continues, the toll revenue could surpass Rs 80,000 crore for the first time in a full financial year. Back in FY 24, the total toll collection in FY24 stood at Rs 72,931 crore. A senior government official attributed the growth to robust infrastructure development and rising economic activity. 'The government's focus on building and maintaining toll roads at world-class level to substantially reduce travel time and enhance user experience has significantly added to toll user base, resulting in surge in toll collection,' the official told ET, requesting anonymity. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Providers are furious: Internet access without a subscription! Techno Mag Learn More Undo The National Highways Authority of India (NHAI) had revised toll rates by 4–5 per cent starting April 1, in line with inflation adjustments based on changes in the wholesale price index. Jagannarayan Padmanabhan, senior director and global head of consulting at CRISIL Market Intelligence, said the sharp rise in collections was also due to a weaker base last year. 'The 19.6 per cent growth is attributable to a smaller base of last year due to the general election and various state elections which led to subdued growth in the first three quarters of the calendar year.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
08-07-2025
- Automotive
- Time of India
India's highway toll collection surges 19.6% in Q1, reaching record ₹20,681.87 crore, ET Infra
Toll collection across India's highways surged 19.6 per cent to a record ₹20,681.87 crore in the first quarter of this financial year, compared to ₹17,279.86 crore in the corresponding quarter of 2024-25, on the back of low base, increase in charges and addition of new toll roads, official data showed. Advt Advt The rate of growth was more than double of 9.49 per cent in April-June per the National Electronic Toll Collection data, the number of toll users increased 16.2 per cent to 1,173.30 million in the quarter to June from 1,009.87 million a year the growth momentum sustains, toll collection could surpass ₹80,000 crore for the first time in a fiscal, adding record revenue to the government kitty. The toll collection in 2024-25 stood at ₹72,931 crore.A senior government official told ET that fast-track development of toll roads and increased economic activity are adding to toll collection."The government's focus on building and maintaining toll roads at world-class level to substantially reduce travel time and enhance user experience has significantly added to toll user base, resulting in surge in toll collection," said the official, who did not wish to be NHAI had increased toll charges by 4-5 per cent with effect from April 1, an annual exercise to revise the rates linked to the changes in the wholesale price index-based inflation."The 19.6 per cent growth is attributable to a smaller base of last year due to the general election and various state elections which led to subdued growth in the first three quarters of the calendar year," said Jagannarayan Padmanabhan, senior director and global head, consulting, CRISIL Intelligence."Going forward we should see a good growth trajectory of early teens due to new rollable roads getting added and overall uptick in the GDP (gross domestic product)."India's economy is projected to grow 6.3 per cent to 6.8 per cent in this the annual base rates are uniform across national highways in the country under the National Highways Fee (Determination of Rates & Collection) Rules, 2008, various factors such as lane configuration, length of section, length of bypasses and structures or tunnels and type of vehicle are considered in determining the rate of user fee at a fee plaza for use of a particular section of national highway, resulting in variance in toll rates.
Time of India
07-07-2025
- Automotive
- Time of India
Toll collection up 20% in June quarter
Toll collection across India's highways surged 19.6% to a record ₹20,681.87 crore in the first quarter of this financial year, compared to ₹17,279.86 crore in the corresponding quarter of 2024-25, on the back of low base, increase in charges and addition of new toll roads, official data showed. The rate of growth was more than double of 9.49% in April-June 2024-25. As per the National Electronic Toll Collection data, the number of toll users increased 16.2% to 1,173.30 million in the quarter to June from 1,009.87 million a year ago. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More If the growth momentum sustains, toll collection could surpass ₹80,000 crore for the first time in a fiscal, adding record revenue to the government kitty. The toll collection in 2024-25 stood at ₹72,931 crore. Live Events A senior government official told ET that fast-track development of toll roads and increased economic activity are adding to toll collection. "The government's focus on building and maintaining toll roads at world-class level to substantially reduce travel time and enhance user experience has significantly added to toll user base, resulting in surge in toll collection," said the official, who did not wish to be identified. The NHAI had increased toll charges by 4-5% with effect from April 1, an annual exercise to revise the rates linked to the changes in the wholesale price index-based inflation. "The 19.6% growth is attributable to a smaller base of last year due to the general election and various state elections which led to subdued growth in the first three quarters of the calendar year," said Jagannarayan Padmanabhan, senior director and global head, consulting, CRISIL Intelligence.
Mint
17-06-2025
- Business
- Mint
Facing road construction quality issues, Centre takes away state PWD and state department's powers for bidding out NHs
The Centre has withdrawn the powers of state PWDs (public works departments) and road construction departments (RCDs) to independently issue bid documents for national highway projects in their states, according to a directive by the ministry of road transport and highways (MoRTH). Instead, they will now consult MoRTH's regional officers (ROs), who will evaluate all state-issued bids, recommend necessary changes, and actively participate in resolving legal and arbitration disputes related to national highway works, the directive said, a copy of which was seen by Mint. The new process will be applicable to all highway projects, including those costing less than ₹100 crore but excluding maintenance works. Further, ROs would need to be consulted at every step in the case of contractual disputes and arbitration. MoRTH is preparing a separate, detailed standard operating procedure (SoP) for dealing with arbitration matters that will soon be issued. Also read: Bhel likely to be tendering agency for EV charging stations under PM E-drive Queries emailed to MoRTH remained unanswered. The National Highways Authority of India (NHAI) is responsible for highway construction across the country. However, it often works with state-level agencies for bidding, processing, and building specific highway sections within their states, along with other agencies like NHIDCL and MoRTH's construction wing, The ministry's directive pointed out that 'in several projects pertaining to NH works implemented by State PWDs/RCDs, critical lapses have occurred due to lack of due diligence". That has led to disputes, legal complexities and financial liabilities for the central government, the directive noted, adding that ROs are not consulted or involved during bidding or in the courts, and the disputes are dealt with mechanically without safeguarding the interests of the Centre. The directive has been sent by the MoRTH to secretaries and chief engineers of all states and Union territory PWDs, RCDs and departments dealing with national highways. According to Jagannarayan Padmanabhan, senior director & global head at Crisil Intelligence, scrutinising all proposals from all state governments has its merits and demerits. 'The merits of such an exercise could mean avoidance of construction of parallel and competing roads, having a uniform bid awarding process across the country, and standardization of processes and bid documents, among other things," Padmanabhan said, adding that on the flip side, an additional layer of scrutiny and capacity augmentation at the central level would be needed. Suprio Banerjee, vice president and co-group head at rating agency Icra Ltd said that these measures are likely to increase the award timelines, but project execution is not likely to be hampered while adhering to the norms or standards stipulated by the road ministry. Also read: Nitin Pai: Train more civil engineers to solve our infrastructure crisis 'Also, the involvement of ROs in all legal contractual processes is expected to streamline the disputes adjudication process while avoiding the need for repetition," Banerjee said. 'Land acquisition being a state subject, the coordination between central and state government departments remains crucial to expedite the ROW and other associated approvals." However, Shailesh Agarwal, partner for risk consulting (infrastructure) at EY India sounded a cautionary note when he said that uniform documents don't necessarily mean smoother highways. 'Ultimately, true quality improvement depends on regular quality controls, digitalisation, and accountability at the ground level," he said. 'Due care must be taken to ensure that the new system doesn't become a fresh bottleneck." The disputes process With regard to contractual disputes and arbitration, it has been decided that state PWDs/RCDs would not pursue such matters independently without consultation with ROs. All replies, statements of defence, and written submissions intended for courts / arbitrations shall be vetted by the ROs and returned after scrutiny with comments or amendments before submission within a period of 15 days failing which the replies, statements or submissions may be deemed cleared. The ROs would also be free to engage legal experts from NHAl-empanelled law firms for advice and support. The highway building plan In FY26, MoRTH proposes to construct about 10,000 km of highways, per the outcome budget 2025-26. As highway construction in the country matures, the liberal growth in construction is expected to slow and the focus will shift towards highway maintenance and enduring quality of construction. Out of 146,195 km length of national highways (NH) network in the country, damages have been reported in about 1% of the stretch every year, according to data from MoRTH. The conditions of NHs are assessed from time to time by the MoRTH and its various executing agencies. Also read: Ajit Ranade: West Asia's upheaval intensifies India's challenges of geopolitics The maintenance works on NHs are accordingly taken up from time to time to keep the NHs in traffic-worthy condition. According to MoRTH, the ministry spent nearly ₹6,500 crore on highway repair and maintenance in FY24. A similar level of expenditure is also expected to be incurred in the current fiscal.
Time of India
09-06-2025
- Automotive
- Time of India
Under a new toll policy, road users may pay toll on per km basis
Under a new toll policy which is currently being formulated, the Ministry of Road Transport and Highways is mulling over a framework wherein users of India's highways and expressways can pay charges based on per km basis rather than existing norm of paying a predetermined toll fee. Currently, toll fee is paid on a fixed amount based on the length of stretch under one road project which is normally 60 km, as per the National Highways Fee (Determination of Rates and Collection) Rules, 2008. 'Under the new toll policy , the government is exploring ways to enable users to pay toll based on per km of usage of highways and expressways. In the existing system, users pay a fixed toll irrespective of whether they use the highway stretch for a few km or for the entire length,' a senior government official, aware of the development, told ET Infra. The Minister for Road Transport and Highways Nitin Gadkari had reportedly stated that under the new system, the requirement of physical toll plaza for collection may not be needed. The country in the last few years has seen the deployment of FASTag, a device that employs Radio Frequency Identification or RFID technology for making cashless toll payments without having to stop at toll booths. The government is now in the process of rolling out an enhanced toll system which will be based on Automatic Number Plate Recognition (ANPR) technology, in order to facilitate the implementation of the new toll policy. 'The idea is to ensure that there is no pilferage and revenue loss to the government,' said the official, adding that the new system may incorporate satellite tracking technology as well. The Minister for Road Transport and Highways had reportedly stated that under the new system the requirement of physical toll plaza for collection may not be needed. According to the Ministry of Road Transport and Highways, the ANPR-FASTag-based Barrier-Less Tolling System will be implemented at selected toll plazas. The system will enable vehicles to be charged based on their identification through high performance ANPR cameras and FASTag Readers, without needing to stop at the toll plazas. In case of non-compliance, e-notices will be served to the violators, non-payment of which may result in suspension of FASTag and other related penalties. 'This can be considered as a proactive initiative adopted by the government to adopt a barrier-less tolling will result in seamless toll collection, reduce travel time, eliminate stoppage time at toll plazas, especially during peak traffic hours,' said Jagannarayan Padmanabhan , Senior Director & Global Head, Crisil Intelligence. Existing Concessionaire Agreement Currently, private companies or entities engaged in the construction and maintenance of highways and expressways are allowed to collect tolls and recover their investment under a concession agreement. The official highlighted that under the new toll policy, it is being mulled that revenue be shared with the concessionaire through a centralised pool. 'As the toll collection will become automatic without any intervention at the toll plazas, it is being contemplated that the revenue will be shared with the various concessionaires through a centralised pool by the central government, so that there is no revenue loss to them even if the user is being charged on a per km basis and not a fixed standard rate,' the official said. The official highlighted that under the existing system there are instances wherein the private operator does under-reporting of revenue generated via toll and the new system is aimed at stopping such acts. Padmanabhan highlighted that if the new policy transfers the risk of default payments to the concessionaires, then they must bear the risk. 'There will be no significant adverse impact on the existing concession agreements on toll collections as the technology will promote barrier free tolling systems, which will result in smooth traffic flow and enhanced revenues. However, if the policy transfers the risk of default payments to the concessionaires, they must bear the risk of delayed payments until the default is cured,' said Padmanabhan. According to a statement from the Ministry of Road Transport and Highways, the National Highways Authority of India has invited bids for the implementation of 'ANPR-FASTag-based Barrier-Less Tolling System' for installation at select toll plazas and based on the performance, efficiency, and user response to this system, a decision will be made regarding its implementation across the country.
