In a major achievement reflecting improved efficiency and transparency in toll operations, the National Highways Authority of India (NHAI) announced a reduction of ₹2,062 crore in the cost of toll collection at public-funded toll plazas during the financial year 2024–25.
According to official data, the cost of toll collection fell from ₹4,736 crore in FY 2023-24 to ₹2,674 crore in FY 2024-25, marking a 44% decline. In percentage terms, the cost dropped from 17.27% of total toll revenue to just 9.27%, signifying a substantial boost in operational efficiency.
In FY 2023–24, toll agencies collected ₹27,417 crore, of which ₹22,681 crore was remitted to NHAI. During FY 2024-25, total toll collections rose to ₹28,823 crore, while the amount remitted to NHAI increased significantly to ₹26,149 crore.
NHAI attributed this achievement to a series of targeted reforms and improved contract management practices. These included closer monitoring of existing contracts, the removal of the deemed three-month extension clause, timely tendering, and ensuring that most toll collection contracts were awarded for one-year durations instead of short-term three-month periods.
The authority also took steps to minimize premature contract terminations, allowing only three such requests per financial year and restricting contractors who sought premature termination from rebidding at the same plaza.
To further streamline operations, NHAI regularly engaged with the All India User Fee Collection Federation to resolve challenges faced by toll collection agencies and to build greater industry confidence. The timely release of performance securities and bank guarantees also enhanced contractors’ liquidity, enabling them to place higher and more competitive bids.
Additionally, a new ‘Windfall Gain’ clause was introduced in tolling agreements to prevent undue profits by toll operators. Under this clause, if the 15-day moving average of toll collections exceeds 40% of the remittance paid to NHAI, the contract can be terminated to maintain fairness and transparency.
The Ministry of Road Transport & Highways noted that these comprehensive measures have significantly improved the efficiency of tolling operations and strengthened NHAI’s financial performance.