CHENNAI: A year after a one-time reduction in National Highway toll charges following a change in the Wholesale Price Index (WPI) linking factor, the National Highways Authority of India (NHAI) has increased user fees after the Delhi High Court restored the earlier calculation method.
The latest revision, the second since May this year, has led to a steeper hike for commercial vehicles.
Trucks, multi-axle and oversized vehicles have seen the sharpest increase, with toll charges rising by around Rs 25-30 at several plazas. For cars, jeeps and other light motor vehicles, the increase is largely confined to return-trip fares at some toll plazas. The monthly pass for local private vehicle owners residing within 20 km of a toll plaza has also been raised from Rs 350-360.
Tamil Nadu has nearly 7,000 km of National Highways and 80 toll plazas. User fees at 66 plazas are revised annually on April 1, while the remaining plazas are revised on September 1. This year’s April revision was deferred because of the Assembly election Model Code of Conduct and came into effect only on May 23. NHAI has now notified revised rates at plazas including Paranur, Athur, Nallur and Mathur.
Toll rates are determined through a formula that combines a fixed annual increase of 3% with an inflation component equivalent to 40% of the change in the WPI. As the WPI base year is revised periodically, a linking factor is used to ensure continuity between different index seriesA senior official, National Highways Authority of India
The immediate implementation of the revised rates after publication in newspapers caused concern among truck operators and public transporters.
NHAI officials said that the increase follows a Delhi HC order that overturned the Ministry of Road Transport and Highways’ decision to use a lower WPI linking factor for toll calculations. Last year, the ministry had adopted a linking factor of 1.561 to convert the WPI from the 2004-05 series to the 2011-12 series, resulting in a one-time reduction in user fees.
Highway operators challenged the move before the HC, which directed the restoration of the previous linking factor. Acting on the court’s order, the ministry issued a circular on June 29 this year reinstating the linking factor of 1.641 for toll computation.
Officials explained that toll rates were determined through a formula that combines a fixed annual increase of 3% with an inflation component equivalent to 40% of the change in the WPI. “As the WPI base year is revised periodically, a linking factor is used to ensure continuity between different index series,” the official added.
The restoration of the 1.641 factor has effectively reversed last year’s one-time reduction, resulting in higher toll charges across several National Highway plazas.