Proposals for Toll Relief Under Government Review

In a move poised to bring significant relief to millions of highway commuters across India, the Ministry of Road Transport and Highways (MoRTH) has proposed two key reforms to the current tolling system on National Highways (NHs) and expressways. These proposals, now under review by the Department of Expenditure in the Ministry of Finance, could mark a pivotal shift in how tolls are levied on private vehicle owners.

Proposed Reforms: A Twin Approach

The proposals include:

1. Exemption from Toll on Narrower National Highways: Highways with fewer than four lanes, specifically two and two-and-a-half-lane roads with paved shoulders, could soon be exempted from tolls. These roads, which currently charge significantly lower tolls, up to 64% less than four-lane highways, generate revenue that in many cases does not cover maintenance costs.
2. Annual Toll Pass for Private Vehicles: Aimed at making regular highway travel more economical for private car owners, the second proposal involves the introduction of an annual toll pass priced around ₹3,000. This pass would grant unlimited access to tolled NHs and expressways for the year.

Minimal Revenue Impact Expected:

The financial implications of these proposals are likely to be modest:

1. Annual passes may result in a marginal dip in toll revenue.
2. Exempting narrow roads from tolls, on the other hand, is unlikely to affect revenues significantly since these routes already yield minimal returns and are largely funded by government agencies.

Significantly, most of the sub-four-lane highways are either toll-neutral or cost-inefficient, with toll revenues often falling short of the operational and maintenance costs.

Currently, there are fewer than 50 toll plazas on these narrow highway segments, and most of them are publicly managed, meaning toll income is collected directly by the government rather than private concessionaires.

However, for four-lane highways and expressways, where private entities play a considerable role in toll operations, any change such as the introduction of annual passes will require careful compensation mechanisms to address potential revenue shortfalls.

What’s Next?

These proposals are expected to simplify the toll regime and enhance public perception of NH infrastructure usage. The changes may also catalyze a broader dialogue around toll rationalization, especially in the context of balancing revenue sustainability with public convenience. The initiatives are in line with the government’s broader push to streamline road transport, promote ease of travel, and improve the overall commuter experience on India’s expanding network of national highways and expressways.