Why in news?
The Public Accounts Committee (PAC) has recommended reforms to end perpetual tolling on highways, where tolls continue even after full cost recovery. It called for fairness, transparency, and rationalisation so road users aren’t overburdened.
Key Recommendations
- Stop or reduce tolls once construction and maintenance costs are recovered.
- Create a specialised regulator for fair toll setting and monitoring.
- End arbitrary yearly hikes (3% + part of WPI) without cost verification.
- Refund commuters when roadwork disrupts usage.
- Improve FASTag operations by fixing scanner issues and providing on-site top-up/replacement.
How Toll is Determined
- Based on National Highways Act, 1956 and 2008 Rules.
- Tolls set by base rates, not actual project cost recovery.
- Annual increase: 3% + 40% of WPI rise.
- Collected by government (public projects) or private players (BoT, ToT, InvITs).
- 2008 amendment allowed tolling to continue indefinitely; extra revenue goes to Consolidated Fund of India.
- Toll revenues rose from ₹1,046 crore (2005-06) to ~₹55,000 crore (2023-24).
Ministry’s Response
- Agreed with PAC concerns.
- With NITI Aayog, working on new toll policy considering:
- Vehicle operating cost
- Highway damage by vehicles
- Users’ willingness to pay
- Aim: fairer, transparent, and cost-based tolling system.