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

  • Global ITS market expected to reach US$ 30.2 billion by 2019
    October 3, 2013
    According to a new market report published by Transparency Market Research, "Intelligent Transportation System (ITS) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019," the global market for ITS is expected to reach a value of USD 30.2 billion by 2019, at a CAGR of 11.1 per cent from 2013 to 2019. The demand for ITS systems is rising globally due to increased congestion in metropolitan areas. Development and deployment of intelligent transportation system not only r
    Read More
  • The long road to Spanish enlightenment
    October 22, 2018
    Julián Núñez, immediate past president of ASECAP, gets his teeth into the vision of a European strategy for toll roads. David Arminas reports from Madrid. Getting European politicians to agree to a long-term cross-border highway infrastructure programme for toll roads is extremely difficult. It’s a bit like pulling teeth: people want to avoid the pain. But pain is something that Spanish operators, including Abertis, OHL, ACS, FCC and Acciona, have been going through for the past decade. The country has
    Read More
  • Belarus toll system expanded
    August 7, 2014
    The BelToll electronic toll collection system, implemented and operated by Kapsch TrafficCom in Belarus, Serbia, was expanded by another 256 kilometres at the beginning of August, just one year after its commissioning in 2013. The system, which was also expanded by 815 kilometres in January 2014, is now 1,189 kilometres long; according to Kapsch TraffiCom, the number of registered vehicles has more than trebled since the system was put into operation, increasing from 60,000 to 190,000 vehicles.
    Read More
  • Cellular communications drive the way forward for tolling
    January 18, 2012
    For more than 20 years prior to joining the ITS industry, Mike Payne of Idris, part of Federal Signal Technologies, worked for Vodafone - the world's biggest mobile operator. Here, he considers how the road tolling sector can grow and learn from the cellular industry. The global cellphone has been one of the most successful collaborative technology projects in the last 30 years. Mobile phone technology developed throughout the 20th century with the first public service in the early 70s. This was followed by
    Read More

Highlighted Content