Government Officials To Also Pay Toll: New Rules Coming
The national highway network in India is expanding rapidly. Tolls are now seen as the fee we pay to use the highway infrastructure. Even so, certain categories of vehicles/ people are exempted from paying them. According to a recent Times of India (TOI) report, the government is considering to reduce the list of exemptions. Vehicles attached to senior government officials (state and central) may soon be taken out from the exempted categories. A high-level committee is now reviewing the existing exemption system.
The high-level committee has been set up by the central government. It has recommended the Road Transport Ministry to amend the National Highways Fee Rules. These define the toll rates at plazas across the country and the rules related to them. The proposal asks to eliminate the exempted category. Various stakeholders are known to be discussing it now and if it goes through, we may see the exempted category getting reduced in a graded manner.
"The proposal to begin this exercise with government officers is under active consideration. There is a focus on doing away with VIP culture as this doesn't go down well with common citizens,"- a person aware of the matter reportedly told TOI.
The ministry has reportedly written to different government entities to encourage their employees to purchase FASTag Annual Pass instead of seeking exemption. The annual pass fee can then be refunded. A similar approach may be taken with the defence forces as well.
If you aren’t familiar with it yet, the FASTag Annual Pass is a prepaid program that lets you pay in advance for one year of travel or 200 toll passes. It can be used across the nation. At present, the annual pass comes at a price of Rs 3,075. Previously, it used to cost Rs 3,000. The annual pass can be renewed multiple times a year.
At present, vehicles being used by or accompanying high government officials ( people holding 25 public offices), official vehicles used by defence personnel, armed forces, highway project personnel, and emergency services are exempted from paying toll.
These are fitted with ‘Exempted FASTags’, issued by IHMCL (Indian Highways Management Company Limited), under the National Highways Authority Of India (NHAI). This legally exempts the vehicle/user from having to pay tolls.
National highway users will have to pay tolls forever. Historically, tolls were seen as temporary setups to recover the cost of building highways. Back then, the expectation was that toll plazas would go away once the full cost was recovered.
However, a recent, silent amendment to the National Highways Fee Rules in 2008 has fundamentally changed how tolling works here. According to the amended rules, tolls are seen as the usage fee. This means paying tolls is something that will go on forever.
According to the new rules, once the cost of construction of the highway is recovered, the toll amount will be reduced to around 40% of the original rate. The logic behind this transition is simple.
Highways require periodic maintenance, upgrades, and there are also other operational costs. The reduced toll ensures a steady stream of revenue from these sections. However, for users, this often feels like an endless payment cycle.
Things do not, however, end there. Even after the construction cost of a section is completely recovered, and the toll amount is reduced, if the section is upgraded, say from four to six lanes, the cycle resets to the original rate.
Souce: TOI