Don’t miss the latest developments in business and finance.

PMO asks road transport ministry to review new toll rates

Image
Mihir Mishra New Delhi
Last Updated : Jan 20 2013 | 12:31 AM IST

The Prime Minister’s Office (PMO) has asked the road transport ministry to deliberate on the new toll rates on highways with the Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, and then forward it to the Cabinet for clearance.

“As toll collection is the source of revenue for the road transport ministry and the National Highways Authority of India (NHAI), PMO has asked the ministry to deliberate on the same at the EGoM,” said a source in the ministry.

The new toll policy has recommended many changes in the existing policy, revised in December 2008, such as bringing the toll rates downwards.

The ministry, which has proposed making tolling of two-lane highways discretionary, will take a call on the same and any stretch with less traffic and a construction cost of less than Rs 1 crore per km will not be tolled.

Also, the government is weighing various options for toll structure based on investment per kilometre (km). For investments between Rs 1 crore and Rs 2.5 crore per km, the toll rate would be 30 per cent of the maximum toll for four-laning. For investments between Rs 2.5 crore and Rs 3.5 crore per km, it would be 50 per cent of the maximum toll for four-laning. Further, for investments beyond Rs 3.5 crore per km, it would be 60 per cent of the maximum toll for four-laning.

Also Read

First Published: Jan 27 2010 | 12:10 AM IST

Next Story