Syllabus :GS2/Governance/GS3/Economy
In News
- The Public Accounts Committee (PAC) of Parliament has proposed major changes to toll collection on national highways, including a recommendation to end the practice of perpetual tolling.
Laws linked to Toll Collection
- Under the National Highways Act, 1956, the government is empowered to levy user fees on national highways, with the policy governed by the 2008 NH Fee Rules.
- These fees are not tied to construction cost recovery but are based on fixed base rates, increasing annually by 3% and partially indexed to inflation (WPI).
- Toll collection can be done by the Union government for publicly funded roads or by concessionaires under BoT, or InvIT models.
- A 2008 amendment allows toll collection to continue indefinitely, even after concession periods end, with revenue then going to the Consolidated Fund of India.
- Toll collections rose significantly—from ₹1,046 crore in 2005–06 to ₹55,000 crore in 2023–24, with ₹25,000 crore going to the government and the rest to concessionaires.
Recent Recommendations
- The Public Accounts Committee (PAC) has recommended ending or reducing tolls on national highways once construction and maintenance costs are recovered.
- The panel criticised the current system of indefinite toll collection, calling it a “regime of perpetual tolling,” and proposed that any tolling beyond cost recovery requires approval from an independent regulatory authority.
- It also suggested creating such an authority to ensure transparency and fairness in toll pricing and regulation.
- The PAC called for toll reimbursements during periods of construction when road usage is disrupted.
- On FASTags, the panel flagged continued traffic delays due to scanner issues and recommended setting up on-site facilities for users to manage their FASTags.
Governments Response
- The Ministry of Road Transport and Highways acknowledged the Committee’s concerns and informed the PAC that it has initiated a comprehensive study with NITI Aayog to revise the user fee determination framework.
| Do you know? – The Public Accounts Committee (PAC), established in 1921 under the Montague-Chelmsford Reforms and mandated by the Government of India Act, 1919 to examine government accounts to detect irregularities, deviations, and inefficiencies. 1. It became a formal Parliamentary Committee on January 26, 1950. 2. It is regarded as one of the most prestigious committees and is reconstituted annually and comprises 15 Lok Sabha members elected by proportional representation, along with 7 Rajya Sabha members elected similarly. – Functions : It is a key parliamentary tool for monitoring government financial activities. It examines appropriation and finance accounts, as well as CAG reports, except for those assigned to the Committee on Public Undertakings. |
Source :TH
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