The National Highways Authority of India (NHAI) has announced a 5% hike in toll rates across the country, effective from June 3, 2024. This increase in toll fees is a routine annual adjustment linked to changes in the wholesale price index (CPI)-based inflation. The revision was initially scheduled for April 1 but was postponed due to the 2024 Lok Sabha elections.
This adjustment affects approximately 855 user fee plazas on the national highway network, operating in accordance with the National Highways Fee (Determination of Rates and Collection) Rules, 2008. Among these, about 675 are publicly funded, while 180 are managed by concessionaires.
The decision to raise toll rates comes in light of significant growth in toll collection over the past years. According to government data, toll collection surpassed Rs 50,000 crore by November 2023 in the fiscal year 2023-24. This surge in revenue is attributed to the expansion of tolled roads and an increase in FASTag users, which has streamlined toll collection processes.
Over the years, there has been substantial growth in the total toll length across the country. From 25,996 km in FY19, the toll length has expanded to 45,428 km as of November-end in FY24. This growth trajectory reflects the continuous development and expansion of India’s road infrastructure.
The implementation of FASTags has played a significant role in enhancing toll collection efficiency. By converting all lanes of fee plazas on National Highways into FASTag lanes in February 2021, the average daily collection via FASTag on NH fee plazas reached Rs 147.31 crore in FY 23-24 (till November 2023). Additionally, the number of average daily ETC transactions on NH fee plazas stood at Rs 86.61 lakh during the same period.
India’s extensive road network, totaling approximately 66.71 lakh km, ranks as the second-largest globally. This vast network, coupled with technological advancements like FASTags, underscores the government’s commitment to modernizing and improving the efficiency of the country’s transportation infrastructure.
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