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The Print
13-08-2025
- Business
- The Print
‘Unacceptable to charge toll with safety, traffic issues'—House panel bats for new road tariff authority
Batting for establishing a tariff authority—on the lines of the Airports Economic Regulatory Authority in the civil aviation sector—to ensure transparency and fairness in toll fixation, collection and regulation, the panel noted, 'While higher toll charges are justified during the period of concession agreement, continuation after that needs to be justified.' 'This includes highway stretches that are incomplete, under prolonged construction, or marked by serious deficiencies in safety and traffic flow,' the Public Accounts Committee (PAC) led by Congress MP K.C. Venugopal said in its report tabled Tuesday. New Delhi: A parliamentary panel looking into the levy of toll fee on national highways has come down heavily on the Ministry of Road Transport and Highways (MoRTH), saying that it is 'unacceptable' that toll continues to be collected even in situations where 'the essential service—namely, safe, uninterrupted, and timely travel—is not available'. The panel said that the authority should be mandated to review and determine the periodicity of toll revisions based on certain parameters. The PAC has also pushed for rationalisation of toll collection on any highway stretch, and its substantial reduction 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,' the PAC said in its report. Noting that while toll rates are revised annually through a formula combining a fixed three percent increment with partial indexation to the Wholesale Price Index, the parliamentary panel said that there is no institutional mechanism to independently evaluate whether toll charges are justified in relation to actual operation and maintenance costs, or future service requirements. 'Continuing to levy toll without delivering the promised level of service violates both the user-pay principle embedded in Section 7 of the National Highways Act and the norms of fair commercial conduct envisaged under Section 10 of the NHAI Act,' the report reads. Drawing parallels with the Income Tax framework, where the government has institutionalised a transparent and automated mechanism to process refunds to taxpayers in cases of excess deduction or payment, the panel further said, 'Charging toll under these conditions not only violates the principle of quid pro quo but also undermines public confidence in the legitimacy of user charges.' Also Read: Parl panel urges CCI to review deal value threshold, address lack of resources & funding concerns 'Need to rationalise base rate' Deposing before the PAC, MoRTH officials said that they have initiated a study with NITI Aayog to revise the user fee determination framework, including base rates, inflation indexing and concession structures. '… all existing contracts and publicly funded toll plazas allowing tolling beyond cost recovery must be reviewed in light of these principles to safeguard user interest and uphold the principle of equity in public infrastructure usage,' the PAC said. It further recommended that the ministry pursue the proposed study—being initiated through NITI Aayog in collaboration with reputed academic institutions—and ensure that it is time-bound and result-oriented. The PAC also recommended that MoRTH and the National Highways Authority of India establish a clear, technology-driven and transparent mechanism for automatic toll refund or waiver in cases where the highway is 'incomplete, unfit, or unavailable fully or under maintenance for use'. 'This system should be fully integrated with the electronic toll collection framework (e.g., FASTag) and designed to function without the need for user intervention, just as income tax refunds are processed and paid directly to taxpayers,' the PAC notes in its report. Currently, there is a provision that if a four-lane road is getting converted to a six-lane road, the user fee is reduced to 75 percent. 'It is because inconvenience is caused to the citizens while travelling on that road. And also, user fee is not increased till the completion of the upgradation,' the report notes. 'If due to some reasons, we are not able to provide the land or the forest or environment clearance, in that case, the scheduled completion date gets extended and the concession of 75 percent continues till the completion of the road is achieved.' (Edited by Mannat Chugh) Also Read: Why 650 Haryana hospitals have halted AB-PMJAY services, in move set to hit 1.4 crore beneficiaries
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First Post
13-08-2025
- Business
- First Post
Why pay toll for highways that don't offer what they promise?
A parliamentary panel has criticised charging tolls on incomplete or unsafe highways, urging a refund or waiver framework to protect motorists' rights and ensure tolls are tied to road quality, safety and promised service levels. Read here A parliamentary panel has called out the practice of charging tolls on national highways that fail to deliver promised services, urging the government to put in place a clear framework for refunds or waivers when road quality falls short. In its latest report, the Public Accounts Committee (PAC) said it was 'unacceptable' that motorists continue to pay user charges even on stretches that are incomplete under prolonged construction or marred by poor safety and traffic management. STORY CONTINUES BELOW THIS AD 'The committee finds it unacceptable that tolls continue to be collected even in situations where essential service is not available. This includes highway stretches that are incomplete, under prolonged construction, or marked by serious deficiencies in safety and traffic flow. Continuing to levy toll without delivering the promised level of service violates both the user-pay principle embedded in Section 7 of the National Highways Act and the norms of fair commercial conduct envisaged under Section 10 of the NHAI Act,' the report stated. The panel recommended a government-backed mechanism to assess highway service levels and determine when users are entitled to refunds or exemptions. Such a system, it said, would not only protect commuters' rights but also ensure that toll collection remains tied to the quality of infrastructure on offer. With toll revenues forming a major part of the National Highways Authority of India's funding, the recommendation is likely to reignite debate over how to balance financial needs with accountability. For road users, however, the question remains as straightforward as the report's title suggests: why pay for a highway that doesn't deliver what it promises?
News18
13-08-2025
- Business
- News18
Develop Transparent, Tech-Driven Toll Refund System: Parliament Panel To MoRTH, NHAI
Last Updated: The Public Accounts Committee said it is 'unacceptable' for highway tolls to continue to be collected when safe, uninterrupted, and timely travel is not available The Ministry of Road Transport and Highways (MoRTH) and National Highways Authority of India (NHAI) have been advised to establish a clear, technology-driven, and transparent mechanism for automatic toll refunds or waivers in cases where the highway is incomplete, unfit, or unavailable for full use or under maintenance. The 33rd Report of the Public Accounts Committee (PAC) on the levy and regulation of fees, tolls, and infrastructure governance on national highways, released on Tuesday, stated that it is 'unacceptable" for tolls to continue to be collected when safe, uninterrupted, and timely travel is not available. The report highlighted the committee's concern over the 'absence of any institutional mechanism" for refunding or waiving tolls in such scenarios, despite the service not being provided. 'This includes highway stretches that are incomplete, under prolonged construction, or marked by serious deficiencies in safety and traffic flow. Continuing to levy toll without delivering the promised level of service violates both the user-pay principle embedded in Section 7 of the National Highways Act and the norms of fair commercial conduct envisaged under Section 10 of the NHAI Act," stated the committee headed by Congress lawmaker KC Venugopal. 'In this context, the Committee wishes to draw a parallel with the income tax framework, where the Government has institutionalised a transparent and automated mechanism to process refunds to taxpayers in cases of excess deduction or payment," it added. MoRTH and NHAI were urged by the committee to establish a mechanism for automatic toll refunds or waivers in cases where the highway is incomplete, unfit, or unavailable for full use or under maintenance. 'This system should be fully integrated with the electronic toll collection framework (e.g., FASTag) and designed to function without the need for user intervention, similar to how income tax refunds are processed and paid directly to taxpayers," it added. Regarding another issue of excess toll collection, the Ministry stated that for Hybrid Annuity Mode (HAM) projects and Public Funded (EPC) projects, toll or user fees are collected by NHAI and the revenue is remitted to the Consolidated Fund of India (CFI) daily as Non-Tax Revenue Receipts of the Government of India. 'Thus, excess toll collection, if any, is also remitted to the Consolidated Fund of India. There is no mechanism prescribed for refunding such excess toll collection to the payee (road user). However, in BOT(Toll) projects where the toll is collected by the concessionaire, if excess toll collection is found and established, it is recovered from the concessionaire as per concession agreement provisions and remitted to the Consolidated Fund of India," the ministry added. In case of any wrongful transactions through FASTag, the amount is remitted back to the user's account upon verification of the grievance or complaint raised by the user. The total chargebacks due to incorrect toll deductions under the National Electronic Toll Collection programme for 2022 (Rs 47.23 crore), 2023 (Rs 58.61 crore), and 2024 (Rs 40.69 crore) stood at nearly Rs 147 crore. The ministry has faced similar questions on social media posts showing national highway sections in poor condition. The automated refund system will ensure users pay only for the service that is actually delivered. Get breaking news, in-depth analysis, and expert perspectives on everything from politics to crime and society. Stay informed with the latest India news only on News18. Download the News18 App to stay updated! tags : highway NHAI parliament toll travel view comments Location : New Delhi, India, India First Published: August 13, 2025, 06:30 IST News india Develop Transparent, Tech-Driven Toll Refund System: Parliament Panel To MoRTH, NHAI Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
12-08-2025
- Automotive
- Time of India
Refund or waive user charge when national highway services are below par: Parliamentary Panel to govt
NEW DELHI: Pulling up the National Highways Authority of India (NHAI) and road transport ministry for collecting toll on highway stretches that are incomplete, under prolonged construction, or marked by serious deficiencies, the Public Accounts Committee (PAC) has recommended a government-backed framework for refunding or waiving user charges where highway services are below par. In its latest report, the PAC has drawn attention to the Income Tax framework, where government has institutionalised a mechanism to process refunds to taxpayers in case of excess deduction or payment, and has recommended that NHAI and the road transport ministry establish a technology-driven and transparent mechanism for automatic toll refund or waiver in case a highway stretch is 'incomplete, unfit, or unavailable fully or under maintenance for use'. The apex parliamentary panel headed by Congress MP K C Venugopal recommended that the refund system should be 'fully integrated with the electronic toll collection framework (FASTag) and designed to function without the need for user intervention, just as income tax refunds are processed and paid directly to taxpayers'. The committee has referred to sections 7 and 10 of the NH Act, which detail the power of government to levy user fee in consideration of services or benefits rendered on NHs and require NHAI to discharge its functions in accordance with sound business principles, to arrive at its conclusions. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Stylish New Mobility Scooters Available for Seniors (Prices May Surprise You) Mobility Scooter | Search Ads Search Now Undo 'The Committee finds it unacceptable that toll continues to be collected even in situations where the essential service — namely, safe, uninterrupted, and timely travel — is not available. This includes highway stretches that are incomplete, under prolonged construction, or marked by serious deficiencies in safety and traffic flow. Continuing to levy toll without delivering the promised level of service violates both the user-pay principle embedded in Section-7 of the NH Act and the norms of fair commercial conduct envisaged under Section-10 of the NHAI Act,' the report said. It also mentioned that the ministry had informed it that toll is presently collected under the NH Fee Rules, 2008, and is explicitly levied for the provision of highway-related services to users. The ministry had also told the PAC that user convenience remains a challenge and that efforts are underway to implement barrierless free-flow tolling systems to enhance service delivery. There have been several instances where courts have directed NHAI to either suspend tolling or reduce charges till highway stretches are back in shape. Questions Perpetual Tolling The panel has also raised questions on toll charges linked to base rates first fixed in 2008 and annually revised, with a 3% annual escalation, irrespective of road quality, traffic volume, or user affordability. It observed 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," it said. It said once the concession period of a BOT-toll project is over, the asset is handed over to NHAI, after which it is operated as a publicly funded toll plaza, with toll revenues credited directly to the Consolidated Fund of India. "While toll rates are revised annually through a formula combining a fixed 3% increment with partial indexation to the Wholesale Price Index, the committee find that there is no institutional mechanism to independently evaluate whether toll charges are justified in relation to actual operation and maintenance costs or future service requirements," the panel said. The committee recommended 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 while urging the ministry to review all existing contracts and publicly funded toll plazas allowing tolling beyond cost recovery in light of these principles to safeguard user interest and uphold the principle of equity in public infrastructure usage. It has recommended establishing a tariff authority, on the lines of the Airports Economic Regulatory Authority (AERA) in the civil aviation sector, to ensure transparency and fairness in toll fixation, collection, and regulation.
