## Policy Summary: Toll Collection Practices on National Highways in India
This document summarizes the Indian Ministry of Road Transport and Highways' response to concerns raised in Lok Sabha Unstarred Question No. 897 regarding toll collection practices on National Highways (NHs). The response addresses three key issues: toll collection before project completion, premature toll collection with inadequate facilities, and the spacing of toll plazas.
**Key Findings and Policies:**
* **Toll Collection and Project Completion:** User fee collection at toll plazas on NHs is governed by the National Highways Fee (Determination of Rates and Collection) Rules, 2008. Tolls are collected only after official notification in the Gazette of India and upon issuance of a Completion Certificate or Provisional Completion Certificate for a specific section of the NH. Therefore, user fees are collected only for completed sections of the highway. However, in case of an ongoing upgradation of a four-lane highway to six or more lanes, the applicable fee is reduced to 75% until the upgradation is completed.
* **Premature Toll Collection and Minimum Facilities:** The policy dictates that toll collection commences only upon completion of a section of the NH. The implication is that minimum facilities should be in place for commuters at this stage.
* **Spacing of Toll Plazas:** The National Highways Fee (Determination of Rates and Collection) Rules, 2008, stipulate that toll plazas on the same NH section and in the same direction must be spaced at least 60 kilometers apart. Exceptions are permitted through a written order, based on factors like land availability, forest areas, minimizing traffic diversion, and municipal limits. Moreover, the 60km rule does not apply to closed user fee collection systems. Tolls collected are based on the project influence length of the respective toll plaza, and not on its specific location within the project influence length.
**Regulatory Framework:**
* National Highways Fee (Determination of Rates and Collection) Rules, 2008.
**Ministry Responsible:**
* Ministry of Road Transport and Highways (India)
**Minister in Charge:**
* Shri Nitin Jairam Gadkari, Minister of Road Transport and Highways
Key Entities Referenced
Ministry of Road Transport and Highways: A ministry within the Government of India responsible for the development and maintenance of road infrastructure.
Prof. Sougata Ray: A member of Lok Sabha who raised a question regarding toll collection practices.
Shri Nitin Jairam Gadkari: The Minister of Road Transport and Highways who provided the answer to the question.
National Highways Fee Determination of Rates and Collection Rules, 2008: A set of rules governing the determination of toll rates and collection on National Highways in India.
Gazette of India: Official government publication in which user fee notifications are published.
National Highway: A highway funded and maintained by the central government of India
Fee Plaza: Location on National Highways where toll or user fee is collected.
Lok Sabha: The lower house of the Parliament of India.
GOVERNMENT OF INDIA
MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
LOK SABHA
UNSTARRED QUESTION NO. 897
ANSWERED ON 24TH JULY, 2025
TOLL COLLECTION WITHOUT COMPLETION OF WORK
897. PROF. SOUGATA RAY:
Will the Minister of ROAD TRANSPORT AND HIGHWAYS
सड़क परिवहन औि िाजमार्ग मंत्री
be pleased to state:
(a) whether the Government has any proposal to make it mandatory that
developers charge toll only after the entire road has been completed and
if so, the details thereof;
(b) whether the Government has noticed that in various construction
sites the developers forcefully collect toll taxes even before completing
fifty percent of work and without ensuring minimum facilities for the
commuters and if so, the details thereof; and
(c) whether the Government has noticed that some developers have
wrongly established toll tax booths within 60 kms. distance from one toll
tax to another and if so, the details of the action taken to check such
illegal activities?
ANSWER
THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS
(SHRI NITIN JAIRAM GADKARI)
(a) to (b) User fee at Fee Plaza on National highways (NHs) is collected
after publication of respective user fee notification in Gazette of India in
accordance with the provisions of the National Highways Fee
(Determination of Rates and Collection) Rules, 2008 and after issuance
of completion Certificate/ Provisional Completion Certificate for a
particular section of National Highway. As such, user fee is collected for
the completed section of National Highway only. However, as per NH
1Fee, 2008, if there is upgradation being taken up from four Lane highway
to six or more lane, fee is reduced to 75% of applicable fee until the
upgradation is completed.
(c) Fee plazas are established on National Highways as per the National
Highways Fee (Determination of Rates and Collection) Rules, 2008,
wherein sub-rule (2) of Rule 8, stipulates that any other fee plaza on the
same section of National Highway and in the same direction shall not be
established within a distance of sixty kilometre, unless permitted
through an order for reasons to be recorded in writing under the proviso
to the said rules. In addition, in case of closed user fee collection
system, fee plazas can be established anywhere on the National
Highways.
There are various factors that are considered to establish a fee plaza
within a distance of 60 Km, such as land availability, forest area,
minimum diversion of traffic & Municipal limits. However, in all such
cases, user fee is collected at the Fee Plaza depending on the project
influence length of respective fee plaza, and not on its specific location
within the project influence length.
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