25% Toll Revenue Comes from Cars
Gadkari pointed out that toll collection from cars and private vehicles contributes less than 25% to the National Highways Authority of India’s (NHAI) total toll revenues. “Around 75% of the toll revenue comes from trucks and commercial vehicles. The remaining 25% comes from cars. There is a thought, which the secretary and NHAI officials can look at... whether we can give monthly or annual passes for cars. The income from this category of vehicles is not much,” he stated during a conference on next-generation toll collection systems.
Current Monthly Pass toll System and Future Plans
Currently, NHAI offers monthly passes for certain stretches, limiting the number of trips a vehicle can make. The Indian Highways Management Company Limited (IHMCL), which oversees toll-related matters, will soon conduct a study to evaluate the financial impact of exempting private vehicles—such as cars, jeeps, and vans—from paying tolls at NH plazas. This study is part of a larger initiative to assess the effectiveness of electronic toll collection.
Sources revealed that IHMCL has already received bids for this study. “The findings will help us plan better,” said an official. The study aims to provide insights into how such exemptions could affect overall toll revenues and help formulate future strategies for toll collection on the national highway network.
Toll shouldn't be charged for poor highways: Nitin Gadkari
Union Road Transport Minister Nitin Gadkari declared on Tuesday that tolls should not be charged if highways are in poor condition. Emphasizing that substandard road quality and long wait times at toll plazas are unacceptable, Gadkari stressed that highway agencies must ensure efficient services before collecting tolls, according to a TOI article.
Importance of Quality Service
“If you don’t provide good services, you should not charge toll,” Gadkari asserted. He mentioned the urgency to begin toll collection for user fees and protecting interests. However, he highlighted the numerous complaints and social media posts about bad road conditions. "You should collect the user fee where you provide the best quality road. If you collect toll on roads with potholes, mud, then there will be a backlash from people. We (political leaders) face people’s ire.”
Addressing Public Complaints
Gadkari urged National Highway (NH) agencies to be sensitive to public complaints caused by toll plaza delays, advocating for a mechanism to quickly address these grievances. His remarks reflect the growing frustration among commuters over highway conditions and toll practices.
Transition to Satellite-Based Tolling
“FASTag,” the mandatory toll payment system introduced in 2021, has facilitated 98% of transactions through smart tags on vehicles. However, reports of long queues at toll plazas continue, leading the National Highways Authority of India (NHAI) to implement a Global Navigation Satellite System (GNSS)-based toll collection system. This new approach aims to eliminate toll gates from the NH network in the coming years.
Initially, NHAI will roll out GNSS-based tolling in phases, starting with commercial vehicles, dedicating one lane on each side of toll plazas for these vehicles to pass through without stopping. Commercial vehicles will need to install a vehicle tracker system (VTS) with an onboard unit for GNSS-based tolling.
Future Expansion to Private Vehicles
Eventually, the GNSS-based tolling system will extend to private vehicles. The road transport ministry has finalized amendments to the Central Motor Vehicle Rules and NH Fee Rules to facilitate this system, which do not require new legislation. Vehicle owners will receive toll charge discounts if their vehicles are equipped with onboard units (OBUs), while disincentives will apply to those who do not opt for this system.
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