Government likely to hike toll fee for private cars

Indian government is planning to bring new national policy to reclassify vehicle type and revising the existing toll rate for national highways, as reported by the news daily. The toll system was last
revised in 2008.

According to the report, the toll rate for private cars may be increased in the reclassification of the vehicle type. At present, the private car owners on average pay Rs 30- Rs 250 toll tax depending upon the route and highways.

The Ministry of road transport and highways (MORTH) is working with Boston Consulting Group (BCG) to the draft policy along with the National Highways Authority of India.

The report quoted one of the officials from the ministry on the condition of anonymity said, “We are in the process of finalising the draft which is being steered by NHAI. The thing is that toll rates for passenger vehicles are very low in India in comparison with the rest of the world but the rates for transport goods vehicles remain very high. BCG has suggested we need to rationalise the rates and reduce them for goods vehicles and increase passenger car fares,”

“It also becomes a political call whether the Centre wants to upset car users to look at the overall economy. When the final draft from BCG comes after being cleared by NHAI, it may go to the Cabinet also as it has wider repercussions,” the official added.

The government is also planning to introduce a “pay as you use” system for national highways in which car owners pay only for the distance travelled instead of the full highway. This system was introduced by Former Finance Minister Arun Jaitley while announcing the Union Budget for 2018-19

Taking cues from various countries, where toll roads are normally access-controlled and the charges are only for distance travelled. While in India, the charges are fixed.

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