Parliamentary panel slams 'perpetual tolling' on national highways

NEW DELHI: A parliamentary panel looking into the levy of user fees or toll charges on National Highways (NHs) has raised concerns over the current practice of "perpetual tolling" even after project costs are recovered and a 3% annual escalation, irrespective of the highway quality, traffic volume, or user affordability.

While recommending rationalisation and substantial reduction in toll charges on such stretches, its report has also mooted a "tariff authority" for toll fixation. The Public Accounts Committee headed by Congress MP K C Venugopal said, "Any continuation of tolls beyond this point should be permitted only if clearly justified and approved by the proposed independent oversight authority". It said the road transport ministry can establish the authority on the lines of the Airports Economic Regulatory Authority (AERA) in the civil aviation sector, to ensure transparency and fairness in toll fixation, collection, and regulation. The report added that the authority should be mandated to review and determine the periodicity of toll revisions based on certain parameters.

In response to the PAC's observation that there is no institutional mechanism to independently evaluate whether toll charges are justified in relation to actual operation and maintenance costs or future service requirements, the ministry said it has initiated a study with NITI Aayog to revise the user fees determination framework, including base rates, inflation indexing, and concession structures.

As per the report, the ministry told PAC that it has requested NITI Aayog to carry out a study in association with IITs and IIMs.

The panel has also sought review of all existing contracts and publicly funded toll plazas allowing tolling beyond the cost recovery period, to safeguard user interest and uphold the principle of equity. It said that while higher toll charges are justified during the period of concession agreement, their collection after that needs to be justified.