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The government detailed toll policy, rising collections, and MLFF rollout in Rajya Sabha, clarifying that tolls are governed by NH Fee Rules, not project cost recovery. Reforms include reduced penalties, annual FASTag pass, and barrier-less ANPR-based tolling for improved efficiency.
Toll Policy, Rising Revenues and Tech-Driven Reforms
New Delhi: The Government of India has presented a detailed clarification in the Rajya Sabha on toll charges, rising collections, and the rollout of advanced tolling systems across National Highways.
Responding to Unstarred Questions No. 1440 and 1391, Union Minister for Road Transport and Highways Nitin Jairam Gadkari outlined the legal framework governing toll fees, recent policy reforms to reduce commuter burden, and the government’s roadmap for barrier-less tolling.
The government reiterated that toll charges are levied strictly under the National Highways Fee (Determination of Rates and Collection) Rules, 2008. Toll rates are determined uniformly across the country based on the length of the highway stretch and the category of vehicle. These rates are revised annually in line with the Wholesale Price Index (WPI) to account for inflation.
Importantly, the Minister clarified that toll collection is not directly linked to recovery of project development costs. Fees are collected as per Gazette notifications and concession agreements.
Even after the concession period ends, tolls may continue to be collected by the Central Government or executing authority under prescribed rules. The revenue is deposited into the Consolidated Fund of India and used for maintenance, development, and augmentation of National Highways.
Addressing concerns about financial pressure on daily commuters and transport operators, the government highlighted several recent amendments:
Reduced user fees for highways with longer structural components.
Lower toll rates for highways upgraded from two lanes to four or more lanes.
Reduction in penalty for non-FASTag vehicles opting for UPI payment (from double toll to 1.25 times).
Rationalised toll rates for partially operational national expressways.
Introduction of a FASTag-based Annual Pass priced at ₹3,000 for non-commercial cars, jeeps, and vans, offering up to 200 crossings or one year validity.
Additionally, discounts and monthly passes are available for local and frequent users. Two-wheelers, three-wheelers, tractors, and animal-drawn vehicles are exempt from toll payment where no service road exists.
The government shared official figures indicating steady growth in toll collections:
₹48,032 crore in 2022–23
₹55,882 crore in 2023–24
₹61,408 crore in 2024–25
₹50,345 crore collected between April–December 2025
The rise in collections is attributed to annual WPI-linked revisions, expansion of tolled highway length, increased traffic volume, and vehicle category mix. While projections of toll revenue reaching ₹1 trillion were raised, the government clarified that collections depend on multiple dynamic factors.
On the proposed satellite-based Multi-Lane Free Flow (MLFF) system, expert committees have recommended further deliberation due to concerns related to security, privacy, and operational control. However, the government has decided to implement barrier-less tolling using Automatic Number Plate Recognition (ANPR) integrated with AI analytics along with RFID-based FASTag systems.
An impact assessment of the National Electronic Toll Collection (NETC) programme (2024–25) revealed that average toll plaza crossing time has reduced from 12.23 minutes under manual tolling to just 40 seconds under electronic tolling. This has significantly improved traffic flow, reduced congestion, lowered fuel consumption, and enhanced productivity.
To ensure accountability and accessibility, multiple grievance redressal mechanisms are operational. Road users can lodge complaints through the 24×7 helpline (1033), the RajmargYatra App, dedicated email support, and FASTag issuer banks.
The government also clarified that new toll plazas become operational only after completion certificates, safety clearances, and Gazette notifications are issued in accordance with statutory and contractual provisions.
Overall, the government emphasized that toll collection remains essential for funding India’s expanding highway infrastructure while reforms are continuously introduced to enhance transparency, efficiency, and commuter convenience. With digital tolling systems and policy rationalisation, the focus remains on seamless travel alongside sustainable infrastructure financing.
