NEW DELHI: A parliamentary panel has criticised the practice of “perpetual tolling” on national highways, where user fees continue even after project costs are recovered, along with a 3% annual hike regardless of road quality, traffic, or user affordability.
In its report, the Public Accounts Committee (PAC), chaired by Congress MP K.C. Venugopal, recommended rationalising and substantially reducing tolls on such stretches. It proposed creating an independent “tariff authority” — similar to the Airports Economic Regulatory Authority — to oversee toll fixation, ensure transparency, and approve any tolling beyond cost recovery.
The PAC noted there is no institutional mechanism to assess whether toll rates align with actual maintenance costs or future service needs. The road transport ministry said it has initiated a study with NITI Aayog, IITs, and IIMs to revise the toll framework, covering base rates, inflation indexing, and concession models.
The committee also urged a review of all contracts and publicly funded toll plazas where tolling continues beyond cost recovery, stressing that such charges must be clearly justified.
