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

  • Santiago metro contract awarded
    January 20, 2014
    Spain’s Isolux Corsán has been awarded a US$100 million contract for the construction of a section of line 3 of the Santiago Metro in Chile. The project, part of the Metro Project, aims to improve the entire underground network in Santiago includes the construction of a 3.7 kilometre tunnel under the Chilean capital and includes the construction of three stations, five circular shafts and two rectangular shafts over a period of 28 months. It is expected to start operating in 2018.
    Read More
  • ASECAP examines tolling during downturns
    September 22, 2014
    ASECAP debated the impact of the financial crises on Europe’s tolling companies and considered the future in diverse economies. Colin Sowman picks some of the highlights. This year ASECAP (Association Europeenne des Concessionnaires d’Autoroutes et d’Ouvrages a’ Peage, with members in 21 countries managing 46,000km of roadway) held its annual Study & Information Days in Athens, Greece – one of the country hardest hit by recent economic problems. While the theme of the conference, Ensuring Sustainability in
    Read More
  • IBTTA launches Twitter chat
    March 21, 2014
    The International Bridge, Tunnel and Turnpike Association (IBTTA) has launched a series of monthly Twitter chats, #TranspoChat, that will focus on a range of transportation issues, including tolling, funding and investment. The first of these chats begins on Tuesday 25 March 25 at 3:00PM EDT with an hour of discussion, debate, and learning moderated by Patrick Jones, IBTTA’s executive director and CEO, and featuring special guest, Lloyd Brown, communications director with the American Association of Sta
    Read More
  • Funding shortfall for US Interstate upgrades
    May 11, 2012
    Andrew Bardin Williams investigates tolling on the federal Interstate system as maintenance and upgrade requirements increasingly outpace funding The I-95 corridor through North Carolina is one of the most heavy trafficked interstates in the US, seeing upwards of 46,000 vehicles per day in some stretches-and North Carolina’s Department of Transportation (NCDOT) estimates this number will to rise to 98,000 vehicles per day by 2040. Along with the rest of the federal interstate system, the North Carolina str
    Read More

Highlighted Content