'NH builders get longer toll period, users to pay 28K cr more'

Users of nine highways, including Delhi-Agra stretch, will have to shell out Rs 28,096 crore as extra toll to Reliance Infra and L&T among other developers due to NHAI giving higher concession period, government auditor CAG said today.
Out of these nine NHs, Anil Ambani group firm Reliance Infra has been given two (Delhi-Agra) and Pune-Satara), while others include L&T, IRB and Varanasi-Aurangabad Tollway Pvt Ltd (Soma Isolux)
National Highways Authority of India (NHAI) also failed to start toll collection on some stretches forgoing Rs 259 crore and also incurred Rs 857 crore cost due to faulty project reports, Comptroller and Auditor General (CAG) said in its report on 'Implementation of Public Private Partnership Projects in NHAI', tabled in Parliament today.

"NHAI considered only tollable traffic instead of total assessed volume of traffic. This resulted in fixing of longer concession period which put an extra burden on road users. During these extended concession periods, the concessionaires would collect toll at least to the tune of Rs 28,095.54 crore (NPV: RS 3233.71 crore), while the roads would become congested for the toll paying users," the report said.
The report said users on Varanasi-Aurangabad would have to pay Rs 11,547.75 crore to Varanasi Aurangabad Tollway Pvt Ltd, while those using Pune-Satara and Delhi-Agra stretches will require to pay additional user fee of Rs 3,421.08 crore and Rs 752.80 crore to PS Toll Road Pvt Ltd and DA Toll Road Pvt Ltd, both Reliance Infrastructure SPVs.

For Pune-Satara Road, the CAG said "Rs 3421.08 crore is the revenue projected during the 21st year to 24th year by the financial consultant at the time of financial evaluation of the project."

On Delhi-Agra stretch, it remarked that "Basis of fixing concession period at 26 years by NHAI is not available ... Considering toll revenue of at least Rs 188.20 crore per year from 23rd year to 26th year, the total extra burden on road users would be Rs 752.80 crore."
Likewise, extra buren on road users would be Rs 2,061 crore for Jaipur-Tonk-Deoli stretch, collected by IRB Jaipur Deoli Tollway, Rs 2,143 crore for Beawar-Pali-Pindwara stretch by L&T BPP Tollway and Rs 4,631 crore for Kiratpur-NerChowk by Kiratpur NerChowk Expressway respectively.

Users will have to pay Rs 501 crore extra fee for Zhirakpur Parwanoo to Himalayan Expressway and Rs 1,641 crore on Sambalpur-Baragarh stretch to Sambalpur Baragarh Expressway, it said.
The government auditor made it clear that the Ministry of Road Transport and Higways accepted the "audit observation regarding incorrect adoption of tollable traffic instead of total traffic for determination of concession period."
It also said that the Ministry had set a target for widening and up gradation of National Highways (NH) at 20 km per day but NHAI's achievement during 2009-10 to 2012-13 ranged between 3.06 km and 17.81 km per day only.