The Hindu Business Line : Bengal doesn't favour imposition of toll tax on roads

WEST Bengal is not encouraging imposition of toll tax on roads for any long-term period for BOT (build-operate-transfer) projects with private sector participation.

The State Government feels that revenue generation for the newly built road projects through collection of toll tax is not a feasible proposition. Instead, the Government is willing to opt for any other mechanism for the private players. It is also willing to give long-term Government guarantee for the private sector players.

This was stated by the West Bengal Minister for Public Works and Public Works (Roads) Department, Mr Amar Chaudhuri, at an interactive seminar at the Bengal National Chamber of Commerce and Industry.

However, the National Highway Authority of India may collect toll taxes for some sections of the highway that would be developed by it within the State. In fact, the NHAI is already following the toll tax concept in several parts of India.The West Bengal Government, Mr Chaudhuri said, would not oppose any NHAI plan for collection of toll tax for roads.

"All NHAI projects are actually Central Government projects and we have nothing to say about it. For the State Government projects, we feel that collection of toll tax is not a feasible proposition", he said.

However, the State Government has already imposed toll tax for some of the bridges built. According to the Minister, the Government would continue to charge toll tax for the future bridges that are contemplated.

Meanwhile, the Government is planning to take fresh loans from foreign agencies for infrastructure development in the State. Several projects have been identified and feasibility reports are being prepared as a groundwork for the application of the loan.

Till now, the West Bengal Government has taken Rs 1,500 crore worth of loans from the ADB and another Rs 360 crore from Japan bank for International Cooperation (JBIC).

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