House Panel Calls for End to Highway Tolls Post Cost Recovery

fast Summary

• The Public Accounts Committee (PAC) has recommended reducing or scrapping tolls on national highways once capital and maintenance costs are recovered.
• A proposed tariff authority by PAC aims to ensure fairness in toll determination, similar to the Airports Economic Regulatory Authority (AERA).
• PAC advocates for technology-enabled mechanisms like automatic toll refunds or waivers for roads under maintenance, integrated with the electronic FASTag system.
• Toll charges on National Highways have been increasing annually by 3% since a 2008 amendment formalized perpetual tolling even after project costs recovery.
• Users are still charged tolls despite incomplete road infrastructure or ongoing highway expansion/maintenance. PAC suggests refunds in such cases.
• PAC highlights congestion issues at FASTag-enabled plazas due to scanner failures and has recommended real-time monitoring systems alongside facilities for managing FASTags at site levels.

Indian Opinion Analysis

The recommendations from the public Accounts Committee address systemic concerns surrounding perpetuated highway tolling and aim to strike a balance between user equity and infrastructure upkeep. While perpetual toll systems provide revenue sustainability, thier fairness-particularly following cost recovery-has attracted criticism. Establishing an self-reliant tariff authority might help regulate transparent pricing standards across sectors, ensuring users benefit from equitable infrastructure usage.

Refund proposals tied to incomplete road works emphasize accountability on part of operators while bolstering consumer protection mechanisms through FASTag-linked technologies. Technological integration forms a recurring theme in addressing operational inefficiencies-from failed scanners at plazas causing congestion to real-time traffic condition dashboards enhancing user experience.

If implemented effectively, these measures could assist not only in rationalizing user fees but also ensure India’s highway infrastructural policies align more closely with principles of fairness and efficient service delivery.

Read More: The Hindu Article