Maharashtra may have to shell out ₹300 cr to developers for taking over toll plazas

Mamuni Das New Delhi | Updated on March 12, 2018 Published on June 10, 2014

44 toll booths ordered shut on Monday are on small stretches

Around 26 per cent of the total toll plazas belonging to the Maharashtra Government will be shut. These are mainly small projects – with values ranging from ₹2 crore to ₹14 crore.

The State Government on Monday announced that 44 toll booths across the State will be shut . But, the users will have to wait before it becomes a reality, as the State Government will have to issue notifications announcing the cancellation of tolls. Officials in the know said that this will be done “at the earliest”.

The announcement of Maharashtra Deputy Chief Minister Ajit Pawar to this effect follows growing resistance against paying tolls for even the smallest of facilities. It comes as the Congress-NCP Government readies for the Assembly elections in the State after facing defeat in the Lok Sabha polls.

Compensation factor

Most of the 44 toll booths that will be shut are those with smallstretches of roads, bridges and over-bridges. “People do not mind paying tolls on four/six-lane roads with good facilities, where they get visible benefits,” claimed an official.

To take over the toll plazas, the Government will compensate all the developers by paying them over ₹300 crore. The amount is pre-defined for each developer in the concession agreement or the contract between the road developer and State Government. “The concession agreement had a clause that allowed us to take back the project from the developer by paying the net present value of the cash flow that would have accrued to developers in the remaining part of the concession period. We will use this clause,” said a senior State Government official.

Maharashtra has 166 operational toll plazas, of which 40 are on National Highways. Of the remaining 126, some 77 are under the State Public Works Department and 34 under the Maharashtra State Road Development Corporation (MSRDC). Of the 44 toll plazas that will be shut, 34 are under PWD and 10 under the MSRDC.

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Published on June 10, 2014
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