Govt to come up with a new toll system soon, rates to come down: Nitin Gadkari

Union Minister Nitin Gadkari at Rising Bharat Summit

The government is set to come up with a new system that will transform the entire toll system in India, aimed at giving relief to the common man, Union Minister of Road Transport & Highways, Nitin Gadkari said on Tuesday.

"We are bringing a policy, which will bring relief to the common man. We are changing the process of toll... I cannot tell more than this, but I believe it will be announced in the next 8-10 days," said Gadkari at the News18 Rising Bharat Summit in New Delhi.

Gadkari also ensured that the toll rates will be reduced following the implementation of the new system.

The Union Minister had mentioned the new toll policy while speaking in the Parliament last month. He said that while toll charges are necessary to fund India’s expanding road infrastructure, the government is committed to making the system more consumer-friendly.

According to the rules of 2008, toll plaza on the same section of the national highway and in the same direction cannot be established within 60 kilometers.

All user fee plazas on National Highways are established as per the provision of National Highways Fee (Determination of Rates and Collection) Rules, 2008 and the respective Concession Agreement.

India’s toll collection has surged in recent years, with revenue reaching Rs 64,809.86 crore in 2023-24, a 35% increase from the previous year. In comparison, the collection stood at Rs 27,503 crore in 2019-20.

As part of his ambition to make India a green economy, Gadkari said earlier this month that he wants to slash GST on hybrid vehicles and has vowed to rid the country entirely of the over 36 crore petrol and diesel vehicles.

The proposal to reduce GST on hybrid vehicles to five per cent and to 12 per cent for flex engines has been sent to the Finance ministry which is considering the requisition, he said.