New Toll System Before April 1, Says Nitin Gadkari

Union Road Transport and Highways Minister Nitin Gadkari has announced that the government will introduce a new toll policy before April 1, offering a reasonable concession for consumers. Speaking at a media conclave, Gadkari stated that the policy aims to address concerns regarding toll charges while ensuring sustainable funding for road infrastructure projects. However, he did not disclose specific details about the upcoming policy.

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India’s toll collection has seen a sharp increase over the past few years. In the financial year 2023-24, the total toll revenue reached ₹64,809.86 crore, reflecting a 35 per cent growth compared to the previous year. This marks a substantial rise from ₹27,503 crore collected in 2019-20. The surge in toll revenue highlights the expanding highway network and increased vehicular movement across the country. 

During a discussion in the Lok Sabha on Thursday, Gadkari revealed that the government is considering the introduction of an annual pass system for toll payments on national highways. This move is intended to streamline toll collection, enhance operational efficiency, and improve convenience for commuters. If implemented, the system would replace the existing pay-per-use toll collection model, potentially reducing wait times at toll plazas and ensuring smoother travel experiences. 

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To modernise toll collection, the transport ministry has invited Requests for Proposals (RFP) for implementing an Automatic Number Plate Recognition (ANPR) FASTag System. This barrier-free tolling system will initially be introduced at select fee plazas, including Gharonda, Choryasi, Nemili, UER-II, and the Dwarka Expressway. Depending on the success of this pilot phase, the technology may be expanded to other toll plazas in a phased manner. The ANPR system is expected to improve traffic flow, reduce congestion at toll booths, and enhance transparency in toll collection. 

Gadkari also emphasised the government's plans to encourage public participation in highway construction investments. He stated that individuals, particularly those from lower-income backgrounds, would be offered an interest rate of 8.05 per cent on their investments, which is significantly higher than the 4.5 per cent interest rate provided by banks on fixed deposits. This initiative aims to mobilize domestic capital for infrastructure development while providing a better return on investment for citizens.

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In addition to toll policy reforms, the minister highlighted the construction of 36 green express highways across the country. These highways are being developed to enhance connectivity and reduce logistics costs, which currently stand at around 14-16 per cent of the GDP. By improving road infrastructure and optimising transportation routes, the government aims to make freight movement more cost-effective and efficient, ultimately benefiting industries and consumers alike.