A parliamentary panel has strongly criticized the "perpetual tolling" system on national highways, raising concerns about the fairness, transparency, and rationale behind the continued collection of user fees even after project costs have been recovered. The Public Accounts Committee (PAC), chaired by Congress MP K.C. Venugopal, has called for a major overhaul of the toll collection mechanism, deeming the current practice unacceptable.
The PAC's report, tabled in Parliament on Tuesday, highlights that toll collection continues on many National Highway stretches despite incomplete construction, safety deficiencies, or ongoing maintenance. The committee emphasized that this violates the "user-pays" principle and undermines public confidence in the legitimacy of user charges. The panel has called for strict monitoring by the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI), suggesting strong penalties for contractors or concessionaires who collect tolls under such circumstances.
At the heart of the panel's concern is the practice of "perpetual tolling," which was enabled by amendments to the Fee Rules in 2008 and further formalized in 2023. This allows toll collection to continue indefinitely, even after the initial project costs are recouped and the concession period ends. While the collected tolls are deposited into the Consolidated Fund of India, the PAC noted the absence of any institutional mechanism to assess whether such charges are justified based on actual operation, maintenance costs, or future service requirements.
The PAC has, therefore, recommended the establishment of an independent tariff authority, modeled after the Airports Economic Regulatory Authority (AERA), to regulate toll fixation, collection, and periodic revisions. This authority would be responsible for ensuring transparency and fairness in the tolling process. The panel said that the authority should be mandated to review and determine the periodicity of toll revisions based on certain parameters.
The committee has further suggested that toll rates should be substantially reduced once capital and routine maintenance costs have been recovered. Any continuation of tolls beyond this point should be permitted only if clearly justified and approved by the independent oversight authority. The PAC has also advocated for a review of all existing contracts and publicly funded toll plazas that allow tolling beyond the cost recovery period, to protect user interests and uphold the principle of equity in public infrastructure usage.
The PAC has also raised concerns about the lack of a mechanism for refunding or waiving tolls when highways are incomplete, unfit, or undergoing maintenance. It has recommended that MoRTH and NHAI establish a system for automatic toll refunds or waivers in such cases. The committee has also flagged issues with FASTags, including malfunctioning scanners, poor enforcement, and the absence of recharge points at toll plazas, leading to congestion and inconvenience for commuters.
The Ministry of Road Transport and Highways has acknowledged the concerns raised by the PAC and informed the committee that it has initiated a study with NITI Aayog to revise the user fee determination framework, including base rates, inflation indexing, and concession structures. The PAC has urged the ministry to expedite this process and implement the recommendations of the committee to ensure a fair and transparent tolling system on national highways.
