The Hindu Business Line : New toll rules suggest hikes for highways with bridges, tunnels

New Delhi, Oct. 11 Light commercial vehicles, trucks, buses and multi-axle vehicles may have to pay steeper toll fees while negotiating bridges, bypasses or tunnels, if the new toll rules formulated for National Highways see the light of day.

In the latest toll rules, the Road Ministry has suggested a further increase of 33 to 50 per cent in the base fees to be levied on most of the vehicle categories plying over bridges, bypass or tunnels.

The suggested increase is over the rates proposed in toll policy rules of 2007. These rules were revised following concerns raised by different stakeholders. Cars, jeeps and vans are the only category of vehicles for which no increase in the base rate is proposed.

If implemented, these toll rates will improve the revenue earning potential of the highway developer who invests in highways that involve the construction of bridges, bypasses or tunnels.

The Ministry has also suggested a more directly proportional linkage between the cost of construction of the structure (bridge, bypass or tunnels) and the toll rate. For instance, it has called for a hike in toll charges for every Rs 5 crore increase in cost of construction.

Specific base rates are proposed for slabs of Rs 10-15 crore.

Thereafter, separate rate hikes are proposed for every incremental Rs 5 crore spent for highway structures costing between Rs 15 crore and Rs 100 crore, Rs 100-200 crore and over Rs 200 crore.

The 2007 proposal had suggested higher toll rates for cost increases in common slabs of Rs 25 crore and Rs 50 crore.

For example, over a base slab of Rs 10-25 crore, the rate hike was similar for projects between Rs 25 crore and Rs 50 crore.

Similarly, higher rates were specified for Rs 50-100 crore, Rs 100-150 crore, Rs 150-200 crore and above Rs 200 crore projects.

For national highways of four or more lanes, the 2008 base rates for each kilometre will be 65 paise (car, jeep, van or light motor vehicles), Rs 1.05 paise for light commercial vehicles, light goods vehicle or mini-bus, Rs 2.20 paise for bus or truck, Rs 3.45 for heavy construction machinery, earth moving equipment or multi-axle vehicle (three to six vehicles) and Rs 4.20 for vehicles with seven or more axles.

The new toll rules propose rounding off of the toll fees to the nearest multiple of Rs 5. The toll charges will increase each year by three per cent (simple interest), and also take into account 40 per cent of the change in wholesale price index between two consecutive years.

The rules have to be approved by the Union Cabinet before implementation.

In the current toll policy, only the length of the road stretch is taken into account while calculating the toll, irrespective of variable construction costs.