How should toll collection practices be reformed? , Pg10

Key Highlights:

• The Public Accounts Committee (PAC) has recommended reforms to toll collection on national highways, advocating for an end to perpetual tolling.
• The PAC suggests discontinuing or reducing toll charges once capital expenditure and maintenance are recovered.
• A specialised regulatory authority is proposed to ensure transparency and fairness in toll determination, collection, and regulation.
• The PAC noted that toll rates increase annually by 3% plus indexation to the Wholesale Price Index (WPI), without independent evaluation.
• The Ministry of Road Transport and Highways has initiated a study with NITI Aayog to revise the user fee determination framework.

Detailed Insights:

• The current toll collection policy allows indefinite collection regardless of road quality, traffic, or affordability.
• The PAC insists on toll reimbursements for highway users when construction hinders proper road usage.
• Despite FASTag implementation, traffic bottlenecks persist due to scanner malfunctions, necessitating on-location support services.
• Section 7 of the National Highways Act, 1956, empowers the government to levy fees for services on national highways.
• The National Highways Fee (Determination of Rates and Collection) Rules, 2008, governs the policy for user fee collection.
• An amendment in 2008 permitted user fees to be collected in perpetuity, even after the concession period ends.
• Toll collection has increased from ₹1,046 crore in 2005-06 to ₹55,000 crore in the financial year 2023-24.
• The study initiated by the Ministry will cover vehicle operating costs, highway damage, and user willingness to pay.

Key Concepts Involved:

• Perpetual Tolling: Indefinite collection of toll charges regardless of cost recovery.
• FASTag: Electronic toll collection system using RFID technology.
• Wholesale Price Index (WPI): Index measuring changes in the price of goods at the wholesale level.
• User Fee: Charge levied on users for the use of a public service or infrastructure.