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

  • Need for standardisation of toll classes
    March 2, 2012
    In a previous article Bob Lees of Idris Technology Ltd looked at the appropriateness of toll classes in relation to all-electronic toll fee collection. Here, he looks at how addressing classification standardisation could avoid downstream aggravation and cost
    Read More
  • Technology holds the key to painless parking
    March 21, 2014
    Parking has been the most innovative of all the transportation sectors in the past five years. Richard Harris, Solution Director, Xerox Services outlines some of the key drivers and trends
    Read More
  • Michigan DoT implements truck parking initiative
    September 9, 2014
    A new project is balancing up the needs of truckers wanting a break from the road and the availability of parking spots in Michigan. Commercial truck drivers typically require around 30 minutes to find somewhere to stop for a rest. They frequently find that the five public rest areas on the heavily-trafficked 129-mile stretch of I-94 in southwest Michigan, which carries around 10,000 trucks a day in the Canada-Detroit-Chicago corridor, are full.
    Read More
  • New York State Thruway AET begins operations
    May 12, 2016
    The Kapsch TrafficCom all-electronic toll (AET) system at the Tappan Zee Bridge went live and began collecting toll revenue on 24 April in South Nyack, on the 570-mile New York State Thruway. Kapsch installed this multi-lane free-flow AET system for the New York State Thruway Authority (NYSTA), which operates and manages the bridge, over the winter after the system successfully passed a series of commissioning and integration tests. The on-schedule opening of these tolled, cashless traffic lanes elimi
    Read More

Highlighted Content