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Utilities

India Introduces New Toll Policy: Reasonable Concessions Ahead for Highway Users

Utilities

9 months agoMRF Publications

India

Introduction to the New Toll Policy

In a significant move aimed at making India's road infrastructure more consumer-friendly, Union Road Transport and Highways Minister Nitin Gadkari has announced that the government will soon unveil a new toll policy. This policy promises to offer reasonable concessions to highway users, addressing long-standing concerns over toll charges on national highways. The announcement comes as India continues to expand its road network, with massive infrastructure projects underway, particularly in regions like Assam.

Background on Toll Charges

Toll charges have been a crucial component in funding India's expanding road infrastructure. The government has emphasized that while tolls are necessary, they are committed to ensuring the system is fair and beneficial to consumers. Minister Gadkari highlighted the importance of tolls in financing large-scale projects, stating, "It is the policy of the department that when you want good roads, you have to pay for it." However, he also acknowledged the need for concessions to alleviate the financial burden on users.

Key Features of the New Policy

The upcoming policy aims to address several issues related to toll collection:

  • Concessions for Consumers: The government plans to introduce reasonable concessions to make tolls more affordable for highway users. This move is expected to reduce the financial burden on frequent travelers and commuters.
  • Toll Plaza Placement: The policy will address concerns over the placement of toll plazas. Currently, the National Highways Fee Rules of 2008 prohibit toll plazas from being established within 60 kilometers on the same highway section and direction. However, exceptions have been noted, and the new policy will likely provide clearer guidelines to prevent frequent toll stops.
  • Infrastructure Development: The government is investing heavily in road infrastructure, with plans to spend Rs 3 lakh crore in Assam alone. This includes the construction of four-lane and six-lane highways, as well as multiple bridges over the Brahmaputra River.

Impact on Infrastructure Development

The new toll policy is part of a broader strategy to enhance India's road network while ensuring that the financial burden on users is minimized. Key highlights of the infrastructure development plans include:

  • Massive Investment in Assam: The government plans to invest Rs 3 lakh crore in Assam for road and bridge construction. This includes developing four-lane and six-lane highways, which will significantly improve connectivity and reduce travel times.
  • Bridges Over Brahmaputra: Multiple bridges are being constructed over the Brahmaputra River, which will not only improve connectivity but also boost economic growth by facilitating easier movement of goods and people.
  • Funding Through Tolls: While tolls are essential for funding these projects, the government is committed to making the system more consumer-friendly. This balance between funding infrastructure and providing concessions will be crucial in the success of the new policy.

Current Toll Collection Trends

India has seen a significant increase in toll collection over recent years. In the fiscal year 2023-24, toll collection reached Rs 64,809.86 crore, marking a 35% increase from the previous year. This surge highlights the growing importance of tolls in financing road infrastructure projects. However, the government's commitment to introducing concessions suggests an effort to balance revenue generation with consumer welfare.

Benefits of the New Policy

The introduction of a new toll policy with reasonable concessions is expected to have several benefits:

  • Consumer Satisfaction: By making tolls more affordable, the government aims to increase consumer satisfaction and reduce complaints about frequent toll stops.
  • Economic Growth: Improved road infrastructure, coupled with more affordable tolls, can boost economic growth by facilitating smoother and more cost-effective transportation of goods.
  • Transparency and Efficiency: The policy is likely to bring more transparency and efficiency to the toll collection system, addressing concerns over the placement and frequency of toll plazas.

Conclusion

The announcement of a new toll policy with reasonable concessions marks a significant step towards making India's road infrastructure more accessible and affordable for users. As the country continues to invest heavily in its transportation network, balancing the need for funding with consumer welfare will be crucial. The upcoming policy is expected to address long-standing issues and provide a more streamlined experience for highway users.

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