India looks at ways to use growing toll revenue

India’s ministry of road transport and highways has embarked on an exercise to see if the government can build more roads through its own resources using the revenue from toll collection. The ministry and the National Highways Authority of India are both flush with cash as more roads have come under tolling. Officials are considering moving away from public-private partnerships until economic conditions improve. Instead they are considering cash-contracts for new road construction and leveraging debt bas
April 10, 2014 Read time: 2 mins
RSSIndia’s ministry of road transport and highways has embarked on an exercise to see if the government can build more roads through its own resources using the revenue from toll collection.

The ministry and the 4855 National Highways Authority of India are both flush with cash as more roads have come under tolling. Officials are considering moving away from public-private partnerships until economic conditions improve. Instead they are considering cash-contracts for new road construction and leveraging debt based on the toll revenue.

Since 2004, the length of toll roads has increased from 1,826 kilometres to 6,660 kilometres for public-funded projects and from 70.35 kilometres to 6,585 kilometres for Build-Operate-Transfer (BOT) projects. This has led to a 700 per cent increase in total toll collection in the period 2004-2005 to 2012-2013. About 63 per cent of this revenue comes from public-funded projects.

Officials say the growth in toll revenue means they have enough money to go ahead with road projects using their own resources.  They also plan to deploy more toll roads to maximise earnings and plough the revenue back into road construction.
Enforcement

For more information on companies in this article

Related Content

  • Tolling executives share best practice at IBTTA annual meeting
    September 30, 2013
    The world’s tolling executives, engineers, and planners gathered in Vancouver last week to share best practices and innovations in transportation from nineteen countries around the globe. The International Bridge, Tunnel and Turnpike Association’s (IBTTA) selected Vancouver for its 81st Annual Meeting and Exhibition due to the city’s dramatic transportation renaissance over the past-decade that has been fuelled by innovative funding solutions, including public-private partnerships, serving as a world-cl
    Read More
  • Mileage based charging offers secure future for funding
    August 10, 2016
    HNTB’s Matthew Click sets out why a move to mileage-based pricing is inevitable. Infrastructure is the most neglected yet the most critical engine of our society, and our continued indifference could lead to a dystopian future. Our roads, bridges and highways have been largely passed by in the digital age—marginalised in an era when funding is limited and stewardship of physical assets has given way to our preoccupation with technological innovation and data—the stuff of the virtual realm.
    Read More
  • Road usage charge pilot under way
    November 22, 2012
    The Oregon Department of Transportation (ODOT) is undertaking a pilot project to test the next generation of a road usage charge system designed to address funding gaps caused by a rise in fuel efficiency and a decline in gas tax revenue. Around forty volunteers have begun testing the new system, where, instead of paying the gas tax, automatically added at the pump, pilot participants will pay a per mile charge based on the number of miles they drive. The charge is roughly equal to the amount of gas tax the
    Read More
  • Maturing photo enforcement gains legal status, public support
    August 2, 2012
    In the US, affirmation of the photo traffic enforcement sector's legal status and rising public support were significant aspects of 2009. James Tuton, President and CEO of American Traffic Solutions, looks back over the year. In 2009, the photo traffic enforcement industry in North America continued to grow and mature, accompanied by increased public, legislative and legal scrutiny. While public support remains strong, we also saw increased attempts to undermine the industry by representatives of a small bu
    Read More

Highlighted Content