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

  • Penang rolls out transport master plan
    February 18, 2015
    Six companies have been shortlisted as potential project delivery partners in the US$7.5 billion Penang Transport Master Plan (PTMP), which is to be rolled out in stages from 2017. The plan aims to resolve traffic woes in the state, especially on the island. It involves massive infrastructure works and a comprehensive public transport system incorporating light rail transit, trams, buses and catamarans, expanding roads and building new highways. It also includes five new intra-state highways and an undersea
    Read More
  • Inrix continues collaboration with Samsung
    March 4, 2015
    Inrix is continuing its collaboration with Samsung on driving-related apps and services and now includes real-time traffic and travel time apps for the new Samsung Galaxy S6 and S6 Edge smartphones. Car mode, which enables users to set their S6 to automatically switch to a driver friendly user interface that uses voice controls and larger, crisper fonts and button sizes to make it easier to get up-to-the-minute traffic information, place and receive calls, listen to messages and play music on the road. Car
    Read More
  • Multi-modal transport system key to liveable city development
    June 20, 2012
    Malaysia’s Economic Transformation Programme aims to transform Kuala Lumpur into one of the world’s most liveable cities. Mohd Nur Kamal, CEO of SPAD, Malaysia’s Land Transport Commission, explains how a world class multi-modal transport system will be key to reaching that goal Superficially, Kuala Lumpur, or KL as it is commonly known, is the model of a vibrant, modern, cosmopolitan city to equal any in the world. The Petronas Twin Towers, an iconic global symbol of Malaysia, are surrounded by stunningly
    Read More
  • Chris Tomlinson: 'My golden rule is have an open mind’
    July 27, 2021
    The executive director of Georgia’s mobility authorities explains tolling’s place in demand management, the benefits of being mode-agnostic and how to learn from other agencies
    Read More

Highlighted Content