Toll collection post-concession within rules, says Centre as Kanimozhi flags issue

CHENNAI: The central government on Wednesday clarified that toll collection on National Highways continues even after the end of concession agreements, either by the government or its implementing agencies, and that such collections are legal under the existing rules.

Replying to a question by DMK MP Kanimozhi Karunanidhi in the Lok Sabha, Union Road Transport and Highways Minister Nitin Gadkari said that toll is not linked to project cost recovery alone but is levied for the use of completed sections of national highways. The funds go into the Consolidated Fund of India and are used for highway development.

Kanimozhi had raised concerns about public anger in Tamil Nadu and other states over toll plazas continuing operations even after the end of the concession period. Gadkari responded that for public-funded projects, toll is collected in perpetuity, while in BOT (Build-Operate-Transfer) projects, toll collection continues under the government after concessionaires exit.

The minister said toll plazas operate as per the National Highways Fee (Determination of Rates and Collection) Rules, 2008 and the Concession Agreement. Audits are conducted to ensure correct toll collection.

In relief for frequent users, the government has introduced an annual pass for private cars, vans, and jeeps with valid FASTag, allowing up to 200 crossings or one year of access for Rs 3,000, whichever is earlier, starting August 15, 2025.

Discounts and exemptions continue for two-wheelers, tractors, animal-drawn vehicles, and regular local users, Gadkari said.