Kaza toll row: Commuters slam high charges despite cost recovery

Kaza toll row: Commuters slam high charges despite cost recovery
Vijayawada: The toll burden on one of the state's busiest highway stretches, near Kaza village close to the capital, Amaravati, on Chennai-Kolkata NH, is drawing sharp criticism, with commuters and the state-run APSRTC alleging that the National Highways Authority of India (NHAI) is continuing to "pinch pockets" despite recovery of project costs years ago. As per the rules, the toll charges should be trimmed by 40% after the completion of the initial contract term, 15 years. Surprisingly, the NHAI went on to raise the charges against its own rules. The latest trigger is the resumption of toll operations by NHAI through a private firm.The 82.5-km stretch between Chilakaluripet-Vijayawada has witnessed exponential traffic growth due to hectic construction activity in the upcoming capital city, Amaravati. What was once a standard toll point has now turned into one of the highest revenue-generating public-funded plazas in South India. Data indicates that the Kaza toll plaza handles over 10 lakh transactions a month, with daily traffic ranging between 30,000 and 35,000 vehicles. Monthly collections are estimated at ₹27-₹30 crore, which means a daily collection of ₹1 crore. The NHAI is making nearly ₹350-₹370 crore annually from a single toll point.
In fact, the revenue is likely to go up at an astronomical level due to the massive increase in vehicle movement, particularly material transport to the capital city.However, the controversy lies in the toll structure itself. The Kaza toll operations originally began in 2009 under a concession agreement that ended in 2024 after a 15-year term. As per established NHAI norms, once the capital cost of a public-funded highway project is recovered, toll charges are supposed to drop to about 40% of the original rates, with collections continuing only for maintenance and upkeep. "The road stretch is eligible for a reduction of toll fee as it was developed under the EPC model, government-funded," said a state govt official.Contrary to this principle, commuters allege that toll charges have only risen. A four-wheeler that paid around ₹60 in 2009 is now shelling out nearly ₹200 per trip and ₹400 for return, a more than threefold increase. This sharp escalation, even after the concession period ended, has raised questions over transparency and regulatory oversight. The fee is around ₹400 per trip for a bus or truck for a single trip and ₹600 return with a monthly pass facility."The impact is not limited to private vehicle users. APSRTC, which operates hundreds of services through this corridor daily, is also bearing a heavy financial burden due to steep toll charges. With fuel costs already volatile, the rising toll expenditure is squeezing the margins of the public transporter, indirectly affecting fare structures and operational sustainability," said a senior official of APSRTC.Critics argue that NHAI's policy of continuing high toll collections even after cost recovery defeats the very purpose of public-funded infrastructure. With no visible reduction in user fees and annual revisions continuing, commuters feel they are being forced to pay endlessly for a road that has already paid for itself. "With no one demanding reduction of the toll charges, the NHAI not only continued collection, but it also increased the tariff at an abnormal rate," fumed social activist K Sivaram.

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About the AuthorSamdani MN

Samdani MN is Editor (Politics-Andhra Pradesh), at the Times of India-Vijayawada. He covers political affairs in the state with a special focus on TDP, YSRCP and BJP. He has authority over irrigation, revenue, energy, excise, inter-state affairs, education, health, tourism and industries. He holds a postgraduate degree in Journalism and Mass Communication and a degree in Law.

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