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Use the AAP solution to toll vandalism

Experts suggest bringing BOT contracts under the purview of the CAG

Nikhil Inamdar Mumbai
Toll vandalism by the Maharashtra Navnirman Sena continues even as party activists have been detained, FIRs have been registered against MNS chief Raj Thackeray and rival factions such as the Shiv Sena are alleging that this is nothing but political opportunism ahead of the elections. There are even fears now of a domino effect and concern that this road angst might spread beyond the state of Maharashtra.  

While MNS's hooliganism and violence needs to be unequivocally condemned, there is no taking away from the truth that there is little transparency in the current tolling process as admitted by Maharashtra's Chief Minister Prithviraj chavan himself recently.
 
There are 4 fundamental points being raised:

A) The design and placement of toll plazas is often not correct, as the distance between toll booths is not as per NHAI norms, which mandate a minimum space of 80 kms between 2 nakas. While this is not applicable for state roads, there is silence on what the norm should be for state highways.

B) In many cases, toll booths are blatantly extortionist, placed as they are, strategically in front of villages and towns

C) The management of the toll plaza system is poor, the quality of roads leaves a lot to be desired and up-gradation works haven't taken place even though toll is being collected for 30 years.

D) Blatant corruption due to lack of transparency in the manner in which bids are awarded, and funds collected by concessionaires are utilized. There are allegations that despite developers recovering the capital outlays which are calculated by embedding profit margins for the concessionaire, they continue toll collection. A Times of India report quoting a Kalyan resident's RTI application shows that "the total cost of Thane-Bhiwandi bypass was Rs 104.83 crore along with maintenance. But the figures put up on the display board by the Kharegaon toll post contractor reveals a collection of Rs 438 crore".

Taking cognizance of the problems listed above, the Bombay High Court had rebuked the state for not framing a comprehensive policy on toll collection. One year down the line, there is no policy, only an assurance that a review will be done.

While we wait for the state government to get on with that task, experts are suggesting that the government espouse the Aam Aadmi Party solution to bring the toll crisis to an end - a national CAG audit of tolling companies.

"We want a CAG audit of all BOT (build, operate transport) contracts on the lines of what the AAP has done in the electricity sector in Delhi. What is happening currently is open loot in the name of toll collection, there is no accountability and if audited the findings could unravel a scam bigger than the 2G scam" says Bal Milkat Singh - President of the All India Motor Transport Congress (AIMTC) an apex industry body representing 7.5 million truck companies, 4 million bus operators and has 2,500 district associations affiliated to it.

Vinayak Chatterjee - Chairman of Feedback Ventures, an infrastructure advisory agrees. "While what is happening currently is nothing but hooliganism, I am a supporter of the idea of bringing public utilities under the Comptroller and Auditor general. Many of these may be private companies, but they are involved in providing a public service and hence need to be more accountable," he says.

Chatterjee also suggests that the long-pending proposal of electronic tolling must be expedited. While Nandan Nilekani's  recommendations on e-tolls, which were to be implemented in 2014 and in which he had suggested a RFID (radio frequency identification system) to be installed at booths are gathering dust, NHAI will soon be coming out with tenders for the same.

"But NHAI highways account for barely 2% of the country's traffic. The states need to device their own e-tolling systems without delay" says Chatterjee, who also calls for the appointment of a neutral expert body like the CRRI (Central Road Research Institute) to undertake a frank, detailed view on the matter of toll collection processes.  

AIMTC, meanwhile, is also lobbying for the issuance of annual permits which it feels will trim down logistics costs and reduce leakages.

"About Rs 9,250 crore was collected by NHAI at 268 toll plazas per annum. We are proposing that the government get rid of these toll plazas and issue us with annual permits to ensure seamless highway traffic. Our study shows there will be no revenue loss even if private vehicles are allowed to ply free and only commercial traffic is charged. On the contrary NHAI revenues could increase by Rs 3,000 crore," says Singh.
 
Ahead of the hectic election season, how carefully the government is listening to these suggestions is anybody's guess. But take note Arvind Kejriwal!

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First Published: Jan 29 2014 | 2:02 PM IST

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