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

  • Taking tolling towards new opportunities
    May 18, 2016
    Vinci’s André Broto presented his views on how the tolling industry could play an important role in helping authorities ease urban congestion, to delegates at the IBTTA conference. As director of foresight and strategy at Vinci Autoroutes, France, André Broto has been spending some time considering the future of tolling in his own country and worldwide. He presented his thoughts, which include a very different angle of the causes of, and solutions to, congestion at the IBTTA’s (International Bridge, Tunnel
    Read More
  • New traffic safety guidelines for bus corridors worldwide
    June 1, 2012
    Embarq, the World Resources Institute’s centre for sustainable transport, has released the draft “Traffic Safety on Bus Corridors” guidelines to improve traffic safety worldwide. Based on more than two years of research, the guidelines are part of the Road Safety in 10 Countries (RS10) project, funded by Bloomberg Philanthropies.
    Read More
  • Emovis: Rethinking smart enforcement in the tolling industry
    June 3, 2024
    Know your paying customers well and your violators even better! This almost sounds like a line you’d hear in an old Western classic movie. Actually, it is a credo to live by for tolling agencies, as Miguel Ainsa, operation director at Emovis, explains
    Read More
  • IBTTA commends new report on infrastructure planning
    October 3, 2014
    The International Bridge, Tunnel and Turnpike Association (IBTTA) has responded to the joint report by the Eno Center for Transportation and the American Society of Civil Engineers (ASCE), which highlights the benefits of life cycle cost analysis in planning transportation infrastructure projects. Executive director and CEO Pa trick D. Jones said: “We commend ENO and ASCE for issuing an important report, Maximizing the Value of Investments Using Life Cycle Cost Analysis. This report is especially timely
    Read More

Highlighted Content