Government to Roll Out New Toll Policy with Reduced Rates, Announces Nitin Gadkari
Government to Roll Out New Toll Policy with Reduced Rates, Announces Nitin Gadkari
Union Minister Nitin Gadkari announces upcoming toll reform aimed at easing financial burden on citizens. New toll policy with lower rates to be revealed in 8–10 days.
In a move aimed at providing financial relief to commuters, the Indian government is set to introduce a new toll policy with reduced rates, Union Minister for Road Transport and Highways Nitin Gadkari announced at the News18 Rising Bharat Summit held in New Delhi.
Gadkari said the policy is designed to bring tangible benefits to the public by reforming the current toll collection system. “We are bringing a policy that will bring relief to the common man. We’re changing the toll process… I can’t reveal more at this point, but it will likely be announced in the next 8–10 days,” the minister stated.
The new toll system is expected to lower toll charges across the country, making road travel more affordable. Gadkari had earlier addressed this issue in Parliament, asserting that while toll revenue remains crucial for funding the nation’s expanding road infrastructure, the government is committed to making the system more citizen-friendly.
Under the National Highways Fee (Determination of Rates and Collection) Rules, 2008, toll plazas must not be built within 60 kilometers of each other on the same section of a national highway and in the same direction. Toll locations are governed by this regulation along with the respective Concession Agreements.
India’s toll collections have seen a dramatic rise, with revenue reaching ₹64,809.86 crore in 2023–24 — a 35% increase from the previous fiscal. For comparison, toll revenue stood at ₹27,503 crore in 2019–20, indicating a significant growth in road usage and infrastructure development.
Further aligning with the government’s green mobility goals, Gadkari also reiterated his push to reduce GST on eco-friendly vehicles. He has proposed cutting GST on hybrid vehicles to 5% and on flex-fuel engines to 12%, a recommendation now under consideration by the Finance Ministry. The minister also envisions phasing out over 36 crore petrol and diesel vehicles in a bid to transform India into a green economy.
