New Delhi: Union Minister for Road, Transport and Highways Nitin Gadkari has made a big announcement hinting at relief for the car users who are subjected to high toll charges while using expressways and highways.
Speaking during a media event, Gadkari said that a new policy will be brought to ease the inconvenience caused by the existing toll policy. Citing the ongoing Parliament session, Gadkari refused to divulge more details.
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Tuesday 25 March 2025
“Before April 1, I am going to declare such a policy on tolls that neither you will ask any question about tolls nor people will crib about the toll charges because there will be so much concession. The national policy is ready…I can’t share more details as the Parliament session is going on,” said Gadkari.
Toll tax has been a highly debated topic in India with people often questioning the exemptions and privileges given to elite classes while the common man is subjected to high charges.
In November 2024, the Ministry of Road Transport & Highways said that Rs 1.44 lakh crore was collected as user fee at toll plazas presently operational under Public Private Partnerships (PPP) model on National Highways since December, 2000. The user fees at plazas on National Highways are collected as per NH Fee Rules, 2008 and its amendment thereof.
“All user fee plazas on National Highways are established as per the provision of National Highways Fee (Determination of Rates and Collection) Rules, 2008 and the respective Concession Agreement. The Government by notification in the official Gazette, levies user fee on National Highways for the use of any section of National Highway, in accordance with the provisions of NH Fee Rules,” said the Ministry.
However, the new toll policy may get incorporated into the rules once announced, bringing relief for the common man.
Annual pass system to replace toll collection
Speaking in the Lok Sabha recently, the Minister said that the government is planning to introduce an annual pass system to replace toll collection on national highways, enhancing operational efficiency and promoting convenience for road users.
The Transport Ministry has also invited Request for Proposal (RFP) to implement Automatic Number Plate Recognition (ANPR) FASTag System-based barrier-free tolling system on the fee plazas of “Gharonda, Choryasi, Nemili, UER-II and Dwarka Expressway”, with the possibility of implementing it on other fee plazas in a phased manner depending upon the outcomes and efficacy of the implementation on these projects.
Speaking at the event, Gadkari said that there is no dearth of money but there is a need to increase the spending of the budgetary allocation.
“Presently, the NHAI toll income is Rs 55000 crore and in the next two years, it will be 1.40 lakh crore. I have a project worth Rs 5 lakh crore for monetisation and budget support of Rs 2.80 lakh crore. I want to increase the speed of spending which gets delayed to environment clearances and land acquisition,” he said.
The Minister said he would want poor people to invest in highway construction and would offer an interest of 8.05% compared to 4.5% offered by banks on deposits. He also talked about 36 green express highways being constructed to cut down on logistics costs drastically.
Gadkari also outlined a strategy to strengthen the rural economy and reduce dependence on fossil fuels. He said 65 per cent of India’s population lives in rural areas but contributes only 12 per cent to national economic growth.
“Our farmers will not only be food providers but energy providers,” he said, explaining an approach to agricultural development focused on biofuel production and alternative energy sources.
Key initiatives:
Biofuel Production
• Increasing corn rates to Rs 2,800 per quintal.
• Developing 400 bio-energy projects nationwide.
• Converting agricultural waste into bio-CNG and bio-bitumen.
Logistics and Infrastructure
• Reducing logistics costs from 14-16 per cent to approximately 9 per cent.
• Developing Green Express Highways.
• Implementing advanced construction technologies.
Electric Vehicle Strategy
• Supporting domestic and international electric vehicle manufacturers.
• Promoting recycling infrastructure.
• Encouraging alternative fuel technologies.
Gadkari said these initiatives align with the government’s goal of making India a USD 5 trillion economy. He stressed the importance of “thinking for the best and preparing for the worst” in addressing global economic uncertainties.
