Nitin Gadkari Announces Implementation of Toll System by April 1

Union Road Transport and Highways Minister Nitin Gadkari has announced a new toll policy before April 1, aiming to ensure sustainable funding for road infrastructure projects and address concerns regarding toll charges.

The minister highlighted the construction of 36 green express highways across the country, which aim to enhance connectivity and reduce logistics costs, currently standing at around 14-16 per cent of the GDP. By improving road infrastructure and optimising transportation routes, the government aims to make freight movement more cost-effective and efficient.

The surge in toll revenue highlights the expanding highway network and increased vehicular movement across the country. The total toll revenue in 2023-24 reached ₹64,809.86 crore, reflecting a 35% growth compared to the previous year.

One of the key features of the new policy is the consideration of an annual pass system for toll payments on national highways. However, the name of the person who proposed this system is not disclosed. The transport ministry has invited Requests for Proposals (RFP) for implementing an Automatic Number Plate Recognition (ANPR) FASTag System, which will initially be introduced at select fee plazas: Gharonda, Choryasi, Nemili, UER-II, and the Dwarka Expressway.

The ANPR system is expected to improve traffic flow, reduce congestion at toll booths, and enhance transparency in toll collection. It will also benefit individuals, particularly from lower-income backgrounds, who will be offered an interest rate of 8.05 per cent on their investments in highway construction.

The new policy also aims to offer a reasonable concession for consumers. The interest rate for investments in highway construction is significantly higher than the 4.5 per cent interest rate provided by banks on fixed deposits, but the exact details about the upcoming toll policy were not disclosed.

The government also plans to encourage public participation in highway construction investments. This initiative benefits industries and consumers alike, as it aims to reduce logistics costs and improve the efficiency of freight movement.

The new toll policy is part of the government's broader strategy to improve India's road infrastructure and reduce the burden of high logistics costs on the economy. With the upcoming green express highways and the introduction of the ANPR system, the future of India's road network looks promising.