NHAI Changes Toll Formula: How New Rule Could Cut Highway Toll Charges by Up to 40%

The Centre has amended the toll calculation formula for highways with bridges, tunnels and elevated stretches, bringing potential savings for commuters and transporters on several routes.

By Vidhi Lalla 

Pune: Motorists travelling on national highways with long bridges, tunnels, flyovers and elevated corridors could soon see lower toll bills. The Ministry of Road Transport and Highways has amended the National Highways Fee Rules, introducing a new formula for calculating toll charges on such stretches. Following the amendment, the National Highways Authority of India (NHAI) has directed its regional offices to begin revising toll notifications in line with the new rules.

The revised formula is expected to provide significant relief, particularly on highways where elevated structures make up a large portion of the route. According to government estimates and industry experts, toll charges on some stretches could reduce by up to 40%, depending on the composition of the highway.

Earlier, tolls on bridges, tunnels, flyovers and elevated roads were generally calculated by treating every kilometre of such structures as 10 kilometres of ordinary highway. The provision was introduced because these structures are considerably more expensive to build and maintain than standard road sections. However, commuters often argued that the method led to disproportionately higher toll charges on routes with long elevated stretches.

Under the amended rules, tollable distance will now be calculated using whichever of the following two methods results in the lower chargeable distance:

• Ten times the total length of bridges, tunnels, flyovers or elevated roads, plus the remaining ordinary highway length; or
• Five times the total length of the entire highway section.

The new formula effectively places an upper limit on the chargeable distance, ensuring users are not billed under the higher calculation if a lower one is available. Structures measuring 60 metres or less will not be treated as separate structures for toll calculation.

How the new formula works

The revised rules include practical examples to explain the calculation.

If a 40-km highway consists of 30 km of elevated structures and 10 km of ordinary road, the previous formula would have resulted in a tollable length of 310 km (30×10 + 10). Under the new rule, the alternative calculation is 200 km (40×5). Since the lower figure must now be used, toll will be calculated on 200 km instead of 310 km, resulting in substantial savings.

In another example, if a 40-km highway has 10 km of structures and 30 km of regular road, the first calculation gives 130 km (10×10 + 30), while the second gives 200 km. Since authorities must adopt the lower value, toll will be charged based on 130 km.

Transport experts say this cap particularly benefits commuters using highways dominated by long bridges, tunnels or elevated corridors, where toll costs have traditionally been much higher.

When will the new toll rates apply?

For publicly funded toll plazas, the revised formula will come into effect during the next scheduled user fee revision.

For concessionaire-operated projects built under public-private partnership (PPP) agreements, the new formula will generally apply after the concession period ends or when the project is transferred back to NHAI. New toll plazas becoming operational in future will adopt the revised calculation from the start of toll collection.

Officials believe the amendment will make toll charges more balanced while continuing to support the maintenance of complex highway infrastructure. The move is also expected to benefit commercial transport operators, who frequently use routes with bridges and elevated corridors, by lowering operating costs on eligible stretches.

FAQs

1. How much can motorists save under the new toll formula?
Depending on the highway’s design, toll charges on stretches with long bridges, tunnels or elevated roads may reduce by up to 40%.

2. How is toll calculated under the new rule?
Authorities will calculate toll using two prescribed formulas and charge motorists based on whichever results in the lower tollable distance.

3. Will the new toll formula apply immediately everywhere?
No. Publicly funded toll plazas will adopt it during their next scheduled fee revision, while concessionaire-operated projects will implement it after the concession period ends or when the project returns to NHAI.