The National Highways Authority of India (NHAI) has reduced the cost of toll collection at Public Funded Toll Plazas by Rs. 2,062 crore (c. £206 million).
The cost decreased from Rs. 4,736 crore (c. £474 million) in FY 2023‑24 to Rs. 2,674 crore (c. £267 million) in FY 2024‑25, bringing the percentage of toll collection costs down from 17.27 % to 9.27 %.
The “Cost of Toll Collection” represents the difference between the toll fees collected by agencies and the amount remitted to NHAI.
Total toll collection by agencies rose from Rs. 27,417 crore (c. £2.74 billion) in FY 2023‑24, of which Rs. 22,681 crore (c. £2.27 billion) was remitted to NHAI, to Rs. 28,823 crore (c. £2.88 billion) in FY 2024‑25, with Rs. 26,149 crore (c. £2.61 billion) remitted.
The savings were achieved through a series of initiatives, including close monitoring of contracts, limiting short-term three-month contracts, minimizing premature termination requests, and ensuring maximum one-year contract durations.
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NHAI also engaged regularly with the All India User Fee Collection Federation to address challenges faced by toll agencies, improve bidding confidence, and release performance securities and bank guarantees promptly.
Additionally, a “Windfall Gain” clause was introduced, allowing NHAI to terminate a toll collection contract if the moving average of toll collection over 15 days exceeds 40 % of the remittance paid to NHAI, preventing undue profits for agencies.
These measures highlight NHAI’s continued commitment to enhancing efficiency, transparency, and operational excellence across India’s tolling network.
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