How Did NHAI Save Rs 2,062 Crore in Toll Collection Costs for FY2024-25?
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Synopsis
Discover how the National Highways Authority of India achieved a staggering Rs 2,062 crore in savings for FY 2024-25 by reducing toll collection costs. This significant drop in expenses reflects effective management and innovative strategies implemented by NHAI, leading to enhanced efficiency in toll operations.
Key Takeaways
- NHAI saved Rs 2,062 crore in toll collection costs for FY 2024-25.
- The toll collection cost dropped from 17.27% to 9.27%.
- Efficient management strategies were implemented.
- The 'Windfall Gain' clause was introduced to regulate profits.
- Collaboration with toll agencies enhanced bidding processes.
New Delhi, Oct 30 (NationPress) The expenditure associated with toll collection has significantly reduced from Rs 4,736 crore in FY 2023-24 to Rs 2,674 crore in FY 2024-25, leading to a remarkable savings of Rs 2,062 crore for the National Highways Authority of India (NHAI), as reported by the Ministry of Road Transport and Highways on Thursday.
In terms of percentages, the toll collection cost has decreased from 17.27% in FY 2023-24 to 9.27% in FY 2024-25.
The cost of toll collection represents the difference between the toll fees collected by tolling agencies and the sums remitted to NHAI at publicly funded toll plazas.
During FY 2023-24, toll agencies collected a total of Rs 27,417 crore, with approximately Rs 22,681 crore sent to NHAI.
Conversely, in FY 2024-25, toll agencies gathered around Rs 28,823 crore in toll fees, of which nearly Rs 26,149 crore were remitted to NHAI.
The reduction in toll collection costs is largely attributed to various initiatives implemented by NHAI, such as rigorous monitoring of existing contracts, eliminating the three-month deemed extension provision, timely bidding processes, and awarding maximum one-year contracts while minimizing short-term contracts.
In addition, efforts were made to significantly reduce short-term, three-month contracts, with limitations on premature termination requests to just three per financial year and preventing the same contractor from bidding on the toll plaza linked to a premature termination.
Furthermore, NHAI has been consistently collaborating with the All India User Fee Collection Federation to tackle challenges faced by toll collection agencies, thereby fostering confidence and enhancing participation in toll bidding processes.
A ministry statement noted that the prompt release of performance security (cash component) and bank guarantees from toll collection agencies further bolstered their bidding capabilities, resulting in higher bid amounts.
Additionally, to prevent any undue windfall profits for toll collection agencies, a ‘Windfall Gain’ clause was introduced in contracts, allowing for termination if the moving average of toll collections over the last 15 days exceeds 40% of the remitted amount to NHAI.
Point of View
It is vital to recognize the significant strides made by NHAI in reducing toll collection costs. This achievement not only reflects effective governance but also serves to enhance public trust in the systems managing our national infrastructure. Such efforts contribute to the overall economic health of the country.
NationPress
09/01/2026
Frequently Asked Questions
What caused the reduction in toll collection costs?
The reduction in toll collection costs was primarily due to efficient management strategies implemented by NHAI, including better contract monitoring and limiting short-term contracts.
How much did NHAI save in FY 2024-25?
NHAI saved a total of Rs 2,062 crore in FY 2024-25 due to the decrease in toll collection costs.
What is the significance of the 'Windfall Gain' clause?
The 'Windfall Gain' clause allows for the termination of contracts if toll collection averages exceed 40% of the remitted amount, preventing undue profits for toll agencies.
