To ease commuters' lives, government considering 2 major proposals
What's the story
The Ministry of Road Transport has suggested two measures to reduce the financial load on commuters traveling on National Highways (NHs) and expressways.
First, it proposed to exempt toll fees on NHs having fewer than four lanes.
Second, it suggested bringing in annual passes for about ₹3,000 for unlimited travel in cars.
Both proposals have been sent to the Finance Ministry for approval, as they could cause some loss of revenue.
Toll exemption
Proposal to exempt tolls on narrow highways
The proposal to exempt tolls on NHs with two-and-a-half lanes, or two lanes and paved shoulders, was suggested by the Minister of Road Transport during a review meeting.
This would provide relief for commuters without significantly impacting revenue from commercial vehicles.
Data reveals that private cars make up about 20-21% of the total ₹6000 crore toll revenue projected for 2024-25, while commercial and heavy vehicles contribute around 79-80%.
Revenue impact
Annual passes could affect toll revenue
A high-ranking official with the Road Transport Ministry said that though annual passes would cause some loss of toll revenue, the exemption from user fee collection on narrower highways wouldn't have any significant effect.
Most of them are publicly funded, and the cost of collection is higher than the revenue generated.
Around 200 toll plazas are located on such stretches. All except a few are publicly funded roads where the government collects tolls through its own agencies.
Minister's statement
Road transport minister's assurance to commuters
Road Transport Minister Nitin Gadkari had earlier assured that these measures would be a major relief for highway commuters.
He said with the introduction of annual passes, there would be no complaints from vehicle owners.
The minister stressed that the option of an annual pass would be accepted by vehicle owners with high probability, which is why it was preferred over the lifetime pass option.