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The average increase of 2.55 per cent in user fees on national highway (NH) tolls is expected to increase the collections by around ₹1,400 crore in the current financial year, Parliament was informed on Wednesday.
The average increase in user fee rates is 2.55 per cent began in FY24, with an annual revision of user fee rates starting from June 3, 2024, Minister for Road Transport & Highways Nitin Gadkari said in response to a written query in the Rajya Sabha.
“During Financial Year 2023-24, total fee collection at National Highway fee plaza operational under NHAI was ₹54,811.13 crore ,” he added.
Traffic volumes
The annual revision in toll rates aligns with the wholesale price index (CPI)-based inflation and is effected across around 983 toll plazas. Out of these, 649 are public-funded/ SPV fee plazas and 334 are operated by concessionaires.
The user fee is levied as per the National Highways Fee (Determination of Rates and Collection) Rules, 2008.
Toll rates and traffic volumes are the two variables which determine toll collections. The toll rate increase is linked to the WPI, while traffic volume is connected to the underlying economic activity, primarily manufacturing, construction, and mining.
For the projects that were bid post 2008, the toll rate is revised annually in April at 3 per cent fixed rate plus 40 per cent of the change in WPI for the preceding December. Hike in toll rates for the projects bid prior to 2008 is 100 per cent linked to the March WPI (toll rate revision happens in July or September each year).
GNSS-based toll collection
The Ministry of Road Transport & Highways (MoRTH) has done a pilot study with regard to Global Navigation Satellite System (GNSS) based user fee collection system on two Highway stretches--Bengaluru-Mysore section of NH-275 in Karnataka and Panipat-Hisar section of NH-709 in Haryana.
A stakeholder consultation through an international workshop was organised on June 25, 2024. Global Expression of Interest (EOI) has also been invited for wider industrial consultation on June 7, 2024 with the last date of submission being July 22, 2024.
It has been decided to initially implement the GNSS based Electronic Toll Collection (ETC) System at selected sections of National Highways on pilot basis as an added facility along with FASTag.
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