Toll rates will be revised only once in a financial year from now on, bringing major respite to motorists across the country.
According to a Cabinet note, to be moved shortly by the Ministry of Road Transport and Highways (MoRTH), the new rate will come into effect on April 1 and no mid-term revision will be allowed by the concessionaires.
The decision comes following complaints of frequent changes in NH toll tariff arbitrarily by the concessionaires in collusion with National Highways Authority of India (NHAI). At present, the concessionaires and the country's road making agency NHAI allow even mid-term toll revision based on Wholesale Price Index (WPI). In some cases, rates have been revised as many as five times leading to hike of more than 150 to 200 per cent.
Road Secretary Vijay Chibber said any change in bonafide toll rates has to be decided harmoniously and a fixed rate would continue for the entire financial year.
“Multiple revision or toll rate escalation at any give time is illegal. The Ministry is on its way to check all such malpractices through a Cabinet approval. Any changes in toll rates will be allowed only on April 1. However, if there is a need in midst of the course for a hike, that will be decided very harmoniously and then duly notified,” Chibber told The Pioneer.
In the absence of a proper checks and balances, existing National Highways Fee (Determination of Rates and Collection) Rules, 2008 which was brought to improve the viability of road projects on PPP mode by provision of an annual increase in fee was being violated. It was enforced to bring uniformity in fee rate for public funded and private investments projects.
“The concessionaires reportedly misuse the NH (Fee) Rule, 2008 in collusion with the NHAI which allowed levying of fee for use of a two lane section of NH on which the average investment for upgradation exceeded rupees one core per kilometre,” said a MoRTH official.
At present, highway toll charges are revised to suit the concessionaire. A dispute between MoRTH and NHAI began when the Ministry sought to increase the annual change in WPI to 70 per cent from the existing 40 per cent a few months ago while retaining the three per cent fixed rate during the second half of the last financial year. Earlier, a proposal was moved by the Ministry to increase toll on all national highways uniformly by up to 20 per cent but NHAI dissented and recorded the move would further burden the public.
There have been frequent complaints, with the recent ones including those against the operators of NH-1 where they hiked toll rates to 150 per cent. The matter was also brought to the notice of Parliament during the last two sessions.