₹168 Crore Collected Daily! Centre Says No to Toll-Free Highways

New Delhi : The Central Government has firmly clarified in the Lok Sabha that there is no proposal to make national highways toll-free. Responding to a question raised by MP Daroga Prasad Saroj, the Ministry of Road Transport and Highways said that toll collection is not merely to recover construction costs but is levied as a user fee under prescribed rules.

Total toll plazas in the country: 1,087 (as of June 2025):

• Daily toll collection: ₹168.24 crore
• Toll revenue in FY 2024–25: ₹61,408.15 crore
• From publicly funded toll plazas: ₹28,823.74 crore
• From private-operated toll plazas: ₹32,584.41 crore

The government has no current plan to abolish toll charges on national highways. The revenue collected is deposited in the Consolidated Fund of India and is used for new road development and repairs. In Build-Operate-Transfer (BOT) projects, toll rights are transferred to the government after a fixed period. However, toll collection on publicly funded roads will continue indefinitely, with annual revisions in toll rates.

Clarifying the purpose of tolls, the Ministry Stated:

“Toll collection is a user fee imposed as per the National Highways Fee Rules, 2008. It is not solely meant to recover construction costs but also supports continued infrastructure development.”

Bhubanpur–Varanasi Highway Case Study

The highway is built in two phases, with a total cost exceeding ₹5,746 crore.

Toll collected so far: ₹73.47 crore
This project reflects the long-term toll recovery model implemented across national highways.

The government explained that funds for road construction are collected in two primary ways:

1. User Fee (Toll):
   Charged directly from highway users as per NH Fee Rules.
2. Cess on Fuel:
   A surcharge on petrol and diesel, the proceeds of which go to the Central Road and Infrastructure Fund (CRIF). These funds are allocated for highways, rural roads, railway crossings, bridges, and airports.

The Centre said that road construction costs vary based on terrain, soil, elevation, required structures like bridges, availability of materials, and traffic load. To streamline cost assessment, the ministry has developed an IT tool that estimates project costs based on technical parameters.

India’s toll collection mechanism is part of a long-term, sustainable infrastructure financing strategy, not a temporary revenue source. With over ₹168 crore collected daily and nearly ₹62,000 crore annually, toll revenue remains vital for the growth and modernization of India’s road network.