Motorists using expressways in India will soon have to pay higher toll charges as the National Highways Authority of India (NHAI) is set to implement an average increase of 5 per cent in toll fees across the country. This annual revision, which was originally scheduled for April 1 but postponed due to the Lok Sabha elections, will be enforced starting June 3, 2024.
Periodic Revision to Keep Pace with Inflation: The adjustment in toll fees is a routine process undertaken by the NHAI to update rates and keep pace with changes in the wholesale price index and CPI-based inflation. As part of this process, the highway user fees are revised annually to ensure a fair and sustainable system of toll collection.
Extensive National Highway Network Affected: India’s national highway network, which includes approximately 855 user fee plazas, will witness the impact of this toll fee increase. These user fee plazas, where tolls are collected, adhere to the National Highways Fee Determination of Rates and Collection Rules, 2008. Out of the total number of plazas, around 675 are funded publicly, while the remaining 180 are operated by concessionaires.
Budgeting for Improved Infrastructure: The decision to raise toll charges comes as the NHAI aims to generate additional revenue for the development and maintenance of the national highway infrastructure. With an extensive road network stretching across the country, it is crucial for the NHAI to ensure sufficient funds to enhance connectivity, improve road conditions, and foster overall economic growth.
Future Implications and Public Response: Although the increase in toll charges may be a necessary step to support infrastructural growth and fill the funding gap, it is anticipated to be met with mixed responses from the public. While some may understand the need for improved transportation facilities, others might express concerns about the burden on commuters and increased expenses for businesses relying on the national highway network.
Conclusion: While the decision by NHAI to increase toll charges is expected to aid in infrastructure development, the impact on motorists and businesses relying on the expressway network remains to be seen. Nevertheless, the revision is a routine procedure to ensure a sustainable revenue system that maintains the nation’s vital network of highways.
