The National Highways Authority of India (NHAI), through Policy Circular No. 17.5.93/2025 dated November 26, 2025, has overhauled the governance framework for implementing and maintaining Electronic Toll Collection (ETC) systems across EPC, HAM, and O&M projects.
This reform, prompted by persistent inconsistencies in technical standards, Service Level Agreement (SLA) compliance, and overall user experience, marks a significant transition towards centralized, uniform, and accountable toll-plaza operations.
Earlier Policy Circulars bearing reference nos. 17.5.83/2022 dated January 17, 2022, and 17.5.88/2024 dated May 10, 2024, mandated the use of IHMCL-empanelled system integrators but failed to ensure uniform deployment due to divergent contractual scopes and field-level deviations. EPC contractors and HAM concessionaires often altered bill-of-quantities, specifications, and manpower requirements, resulting in non-compliant ETC installations, system downtime, and adverse impacts on toll revenue and traffic flow.
Key Features of the 2025 Framework
- Separation of Responsibilities for Future Projects
- Project appraisal will include ETC costs, but ETC works will be excluded from bid documents.
- Civil contractors will limit their role to constructing physical infrastructure (plazas, lanes, FOBs, and power) in line with Policy Circular bearing reference no. 17.5.82/2021 dated May 24, 2021.
- IHMCL will exclusively handle implementation and O&M of ETC systems, ensuring uniformity across India.
- Field units must provide toll-plaza details to the CO Division at the project award stage, and plazas must be handed over six months prior to the anticipated Commercial Operation Date (COD) to enable timely system integration.
- Compliance Requirements for Ongoing and Under-Construction Projects
- ETC infrastructure must strictly comply with the contract agreement as well as the applicable IRC standards, such as IRC SP:84:2019 for four-laning, IRC SP:87:2019 for six-laning and IRC SP:99:2023 for expressways, with adherence to these requirements to be verified through the detailed checklist provided in Annexure-I.
- Certification of compliance must be provided by the HTMS Expert of the Authority/Independent Engineer or IHMCL representative before tolling begins.
- Hybrid ETC lanes must meet stringent monthly uptime requirements: 99% for 90% of lanes and 98% for the balance, monitored via the TMCC portal and reflected in Monthly Progress Reports.
- EPC contractors/HAM concessionaires remain responsible for ETC maintenance during contract periods; failures may constitute material breach.
- PIUs must ensure complete upkeep of all plaza assets, including admin buildings, booths, signage, lighting, safety installations, and landscaping, supported by annual repainting and end-of-life replacements.
- Where DLP has expired or ETC maintenance is not covered under contract, PIUs may undertake one-time repairs and subsequently bring upkeep under O&M/PBMC contracts.
The 2025 Circular reiterates that the EPC contractor or HAM concessionaire is primarily responsible for maintaining ETC systems during the contract period. Any persistent failure constitutes a material breach, as it impacts the toll revenue, causing financial loss to NHAI.
The circular explicitly modifies Policy Circular No. 17.5.88/2024 for new projects and mandates that ETC infrastructure be excluded from all future highway-project tenders, including those currently under bidding, in line with the SOP for new projects. This ensures uniformity across the entire pipeline of forthcoming EPC and HAM awards.
NHAI’s move represents a structured and forward-looking shift in the governance of tolling infrastructure. By centralizing ETC implementation with IHMCL, mandating strict adherence to national standards, enforcing uniform checklists, and establishing measurable uptime benchmarks, the circular seeks to bring nationwide consistency to the tolling ecosystem. While the framework increases responsibilities for contractors, concessionaires and field units alike, it ultimately reinforces operational reliability, strengthens revenue protection, and significantly enhances user experience on India’s national highways.


