NEWS – The Public Accounts Committee (PAC) of Parliament, chaired by K.C. Venugopal, recently submitted a report (August 12) recommending reforms in toll collection on National Highways. The committee raised concerns about “perpetual tolling,” where charges continue indefinitely despite cost recovery.

HIGHLIGHTS

Key Recommendations of PAC

• End perpetual tolling: Toll collection should cease once capital and maintenance costs are recovered.
• Independent oversight: A specialised regulatory authority should oversee toll fixing and revisions.
• Justification for continuation: Any toll beyond cost recovery must be backed by clear reasons and authority approval.
• Reimbursements to users: Commuters should not pay full toll when road construction or repairs restrict smooth travel.
• FASTag improvements: Despite widespread use, congestion persists due to scanner failures. PAC suggested on-site services for recharge, purchase, or exchange.

Current Tolling Framework

• Governed by National Highways Act, 1956 and NH Fee Rules, 2008.
• Fees rise annually: 3% + 40% of WPI-linked cost adjustment.
• Models: BOT, TOT, Infrastructure Trusts, or direct government collection.
• 2008 amendment permits perpetual tolling: once concession ends, NHAI collects toll for Consolidated Fund of India.
• Revenue growth: From ₹1,046 crore (2005-06) to ₹55,000 crore (2023-24), with ₹25,000 crore going directly to the government.

Ministry’s Response

• The Ministry of Road Transport & Highways, with NITI Aayog, has launched a study to revise user fee frameworks.
• The study will factor in vehicle operating cost, road damage, and user affordability.

Analysis

• Equity issue: Perpetual tolling burdens users without linking fees to road quality or affordability.
• Institutional gap: Absence of independent regulation makes toll policy opaque.
• Efficiency concern: FASTag glitches highlight tech adoption challenges.
• Way forward: A transparent, cost-linked toll regime with regulatory oversight can balance infrastructure financing with commuter fairness.