Latest news with #NationalHighwaysAct
The Hindu
2 hours ago
- Business
- The Hindu
How should toll collection practices be reformed?
The story so far: The Public Accounts Committee (PAC) of Parliament has recommended significant reforms to toll collection practices on national highways, such as calling for an end to the perpetual tolling system. The report was submitted before Parliament on August 12. What are the key recommendations? The PAC headed by Congress MP has advocated for discontinuing or significantly reducing toll charges on national highways once the capital expenditure and maintenance expenses have been fully recovered. The Committee expressed concern that current toll practices allow for indefinite collection regardless of road quality, traffic volume, or user affordability, creating what it termed a 'regime of perpetual tolling'. The panel emphasised that any continuation of toll collection beyond cost recovery should only be permitted with clear justification and approval from a proposed independent oversight authority. It proposed establishing a specialised regulatory authority to ensure transparency and fairness in toll determination, collection, and regulation. The PAC noted that while toll rates currently increase annually by a fixed 3% increment plus partial indexation to the Wholesale Price Index, there exists no institutional mechanism to independently evaluate whether these charges are justified relative to actual operational and maintenance costs or future service requirements. The panel has also insisted that highway users should receive toll reimbursements when construction is in progress and commuters cannot properly utilise the roadways. The Committee has additionally recommended that the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI) create a technology-based and transparent system for automated toll reimbursement or exemption in such circumstances, noting that this framework should be incorporated with the digital FASTag infrastructure. Regarding FASTags, the panel observed that despite their extensive implementation, traffic bottlenecks persist on NHs due to malfunctioning scanner readings at collection points, and suggested establishing on-location services for motorists to top up, buy, or exchange FASTags. It states that efficient toll administration must encompass continuous surveillance and evidence-based decision-making and consequently, NHAI should create a live toll plaza monitoring system that combines real-time traffic movement, waiting line lengths, individual lane utilisation, and projected delay periods. How is toll determined? Section 7 of the National Highways Act, 1956 empowers the Government to levy fees for services or benefits rendered on national highways while Section 9 empowers the Union government to make rules in this regard. Accordingly, the policy for the collection of user fee is formulated and governed by the National Highways Fee (Determination of Rates and Collection) Rules, 2008. The levy of user fee is based on the base rates fixed under the NH Fee Rules across the country and is not related to the cost of construction or its recovery. The rates of fees have been increasing by 3% each year from April 1, 2008. In order to cover the impact of variable cost of operation and maintenance, 40% of annual increase of WPI is provided. The fee is to be collected by the Union government if a highway is publicly funded or by the concessionaire if it follows any of these models — Build Operate Transfer (BoT), Toll-Operate-Transfer (ToT) or developed under Infrastructure Investment Trust. An amendment in 2008 allowed user fees to be collected in perpetuity. So, if the concession period is over, the highway is handed over to NHAI, and the toll collected will go directly to the Consolidated Fund of India. The toll collection has gone up from ₹1,046 crore in 2005-06 to ₹55,000 crore in the financial year 2023-24. Of this ₹25,000 crore will go to the Consolidated Fund of India, and the remaining to the concessionaire toll plaza. Discounts are available to users residing within 20 kilometres of the toll plaza based on their Aadhar card or any other proof following which they get a monthly pass of ₹340. Exemptions under the rules are also granted to 23 different categories that include President of India, Vice President, Prime Minister, Governors, Chief Justice of India, Ministry of Defence personnel, Central and State armed forces in uniform including para military forces and police as well as ambulances, funeral vans and vehicles modified for differently abled people. How has the Ministry responded? The Ministry of Road Transport and Highways acknowledged the Committee's concerns and informed the PAC that it has initiated a comprehensive study with NITI Aayog to revise the user fee determination framework. Ministry representatives indicated that the study's scope has been finalised and will cover parameters such as vehicle operating cost, damage to the highway due to vehicle use as well as user's willingness to pay. To address affordability concerns, the government introduced an annual FASTag pass effective August 15, priced at ₹3,000 for non-commercial vehicles, enabling access to 200 toll crossings over 12 months — effectively reducing the cost to ₹15 per toll booth. As far as smooth traffic flow at toll booths was concerned, the Ministry said that it is developing a barrierless free flow tolling system that combines high-quality FASTag readers with Automatic Number Plate Recognition (ANPR) cameras, allowing vehicles to pass through toll plazas without stopping.
The Print
5 days ago
- 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
6 days ago
- 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
6 days ago
- 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.
Hindustan Times
04-08-2025
- Automotive
- Hindustan Times
NHAI cracks down on Highway encroachments and garbage dumping in Pune
In a move to address rising highway accidents around Pune, the National Highways Authority of India (NHAI) has launched a crackdown on illegal encroachments and garbage dumping by roadside commercial establishments. The action follows a spate of incidents reportedly linked to obstructions and safety violations along key highway stretches. NHAI officials stated that such practices compromise visibility, lead to dangerous diversions, and pose a direct threat to commuters. (HT) Taking serious cognisance of the issue, NHAI has begun issuing formal notices to eateries, repair shops, and vendors operating illegally along the highway margins. NHAI officials stated that such practices compromise visibility, lead to dangerous diversions, and pose a direct threat to commuters—particularly during night-time and the monsoon season. Accumulated waste near highways also contributes to waterlogging, slippery conditions, and reduced manoeuvrability for heavy vehicles. 'As per our inspection reports, several establishments are either dumping garbage recklessly or have extended their structures into the highway's right of way,' said a senior NHAI official on condition of anonymity. 'We have issued notices and given a strict deadline for compliance. If not followed, enforcement actions such as demolition and financial penalties will be carried out under the National Highways Act.' Atul Namekar, secretary of the Sinhagad Road-Warje Residents Association, remarked, 'The Katraj-Dehu Road bypass has turned into a dangerous corridor not only due to speeding vehicles but also rampant encroachments. Roadside dhabas, hawkers, and makeshift sheds have taken over highway shoulders, leaving little space for emergency stops or breakdowns.' Namekar added that while complaints have been made repeatedly, on-ground enforcement has remained inconsistent. The NHAI has assured that further inspections and clean-up operations are underway and that continued non-compliance will result in stricter punitive action.
