Union Minister Nitin Gadkari has issued a strong statement, asserting that highway agencies should not charge tolls for roads that fail to meet quality standards. Speaking at a global workshop on satellite-based tolling, Gadkari emphasized that toll collection should only occur on roads providing excellent quality. He criticized the practice of imposing tolls on roads with potholes and mud, highlighting the potential for public backlash.
Gadkari’s remarks come as the National Highways Authority of India (NHAI) is preparing to introduce a GNSS-based Electronic Toll Collection (ETC) system within the existing FASTag framework. This new system will initially utilize a hybrid approach, employing both RFID-based ETC and GNSS-based ETC, starting with commercial vehicles before being implemented for private vehicles. The NHAI is also exploring driver behavior analysis and backend data analysis to combat fraud. The agency believes that the GNSS system could transition payment methods from prepaid to postpaid, facilitating faster credits based on travel plans.
On a separate occasion, Gadkari advocated for flexibility in the Hybrid Annuity Model (HAM) for highway construction. He proposed a more market-driven approach, allowing contractors to invest more than the current 60 per cent threshold, prioritizing project completion. Gadkari questioned the necessity of the government always providing 40 per cent of the project cost, emphasizing that the primary goal should be completion, and proposals should reflect market dynamics.
The implementation of the GNSS-based electronic toll collection is expected to significantly boost India’s total toll collection, with Gadkari estimating an increase of at least ₹ 10,000 crore. India’s total toll collection reached ₹ 64,809.86 crore in 2023-24, representing a 35 per cent increase from the previous year. This surge, exceeding government and industry expectations, is attributed to a significant rise in commercial traffic.
