how the 5% toll rate increase on India's national highways from June 3, 2024, impacts travelers and transporters. Learn about the surge in toll collections, FASTag adoption, and the growth of tolled roads, supporting essential infrastructure development." how the 5% toll rate increase on India's national highways from June 3, 2024, impacts travelers and transporters. Learn about the surge in toll collections, FASTag adoption, and the growth of tolled roads, supporting essential infrastructure development.

Toll Rates To Increase by 5% Across India’s National Highways from June 3, 2024

Starting June 3, 2024, toll rates across India’s national highways will rise by 5%, a decision announced by the National Highways Authority of India (NHAI). This increase aims to support ongoing infrastructure development and maintenance.

Significant Growth in Toll Collection

In the financial year 2023-2024, toll collection experienced remarkable growth, surpassing ₹50,000 crore by November 2023. This surge is attributed to the expansion of tolled roads and the increasing adoption of FASTag, an electronic toll collection system.

Historical Toll Collection Data:

  • 2018-19: ₹25,154.76 crore
  • 2019-20: ₹27,637.64 crore
  • 2020-21: ₹27,923.80 crore
  • 2021-22: ₹33,907.72 crore
  • 2022-23: ₹48,028.22 crore

Expansion of Tolled Roads

The total length of tolled roads in India has significantly increased over the past few years:

  • FY19: 25,996 km
  • 2019-20: 29,666 km
  • 2020-21: 34,071 km
  • 2021-22: 38,315 km
  • 2022-23: 42,595 km
  • FY24 (as of November): 45,428 km

Surge in FASTag Usage

The widespread adoption of FASTag has played a crucial role in the growth of toll collections. By November 30, 2023, over 7.98 crore FASTags had been issued, facilitating seamless toll payments and reducing congestion at toll plazas.

FASTag Statistics:

  • Average daily collection via FASTag: ₹147.31 crore
  • Average daily ETC transactions: ₹86.61 lakh

Impact and Recommendations

  • For Commuters: Regular highway users will see a minor increase in travel costs. For example, a trip costing ₹100 will now cost ₹105.
  • For Transporters: Increased operational costs might lead to higher freight charges, potentially affecting the prices of transported goods.

Government’s Perspective: The NHAI emphasizes that the toll hike is necessary for sustaining and improving highway infrastructure, which is vital for economic growth and connectivity.

Suggestions for Travelers:

  • Use FASTag: To benefit from the 2.5% cashback on toll payments and ensure faster transactions.
  • Efficient Route Planning: Consider alternative routes to manage costs effectively.

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Conclusion

The 5% increase in toll rates is a step toward enhancing India’s national highway infrastructure. While it may pose a slight financial burden, the funds collected will be instrumental in maintaining and expanding the road network, ultimately benefiting travelers and the economy.