New toll rules: Pay only for distance covered, no charges for first 20 km


Toll roads in India are poised to become less burdensome for private vehicle owners with the introduction of a new, innovative toll system by the Ministry of Road Transport and Highways. This new system is part of the revised National Highways Fee Rules, 2024, which introduce a more equitable pay-as-you-go model based on the actual distance traveled.

According to the updated rules, private vehicle owners will not incur toll charges for the first 20 kilometers of travel on highways and expressways, provided their vehicle is equipped with a Global Navigation Satellite System (GNSS). This initiative is designed to make toll payments more transparent and aligned with the actual usage of the road network. The implementation of this system is expected to reduce the financial strain on drivers who only travel short distances, thereby making road travel more economical for them.

Once the initial 20 kilometers are exceeded, toll charges will be calculated based on the precise distance traveled beyond this free threshold. For instance, if a vehicle covers 30 kilometers on a highway, the toll charge will only apply to the 10 kilometers that exceed the complimentary 20 kilometers. This new method aims to ensure a fairer toll structure by reflecting the actual usage of the roads, rather than imposing flat or arbitrary toll rates.

The National Highways Fee (Determination of Rates and Collection) Amendment Rules, 2024, officially introduced this GNSS-based toll collection system. GNSS technology is used to accurately track the distance traveled by a vehicle, which allows for precise and fair toll calculations. This system builds upon the experience gained from a pilot project conducted on select national highways, including the Bengaluru-Mysore section of NH-275 in Karnataka and the Panipat-Hisar section of NH-709 in Haryana.

Union Road Transport and Highways Minister Nitin Gadkari has emphasized that the new GNSS system will be implemented alongside the existing FASTag system, which facilitates electronic toll collection. The transition to the new toll rules is being managed carefully to ensure a smooth implementation. To support this process, the ministry organized an international workshop on June 25, 2024, aimed at gathering insights and feedback from global experts and stakeholders. An expression of interest (EOI) was also sought from various industry players and stakeholders, with submissions open until July 22, 2024. This collaborative approach is intended to refine and optimize the new toll system before its full-scale rollout.

The shift to this updated toll collection system reflects a broader trend towards integrating advanced technologies to enhance the efficiency and fairness of transportation infrastructure management. It also highlights the government's commitment to improving road travel experiences and reducing administrative hassles for vehicle owners.


 

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