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Toll Tax: Now toll tax collection will be in the hands of banks, congestion will be reduced

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Toll Tax: Making a major change in toll collection on national highways, the National Highways Authority of India (NHAI) has now decided to hand over the task of toll collection to banks.

This new system will start from Dwarka Expressway, which has become India’s first Multi-Lane Free Flow (MLFF) toll collection system. NHAI has invited bids from banks for this, in which the bank offering the highest revenue share will be given tolling rights for three years.

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MLFF system eliminates the need for physical toll plazas

Under the MLFF system, traditional toll plazas will not be used. Instead, sensors and equipment will be installed on the pillars, which will collect information of passing vehicles. As soon as a vehicle passes these sensors, the vehicle information will be sent to the electronic toll payment system, which will deduct the amount from the Fastag wallet. The system aims to reduce congestion at toll plazas and make the experience of motorists easier. It will also ensure more transparency in toll collection as banks are regulated by the Reserve Bank of India (RBI).

Banks allowed to have sub-contractors

Since banks do not have direct experience in toll collection, NHAI subsidiary IHMCL has allowed banks to hire sub-contractors. According to the bid document, the sub-contractors should have experience of working on a tolling system of at least 200 km, whether in India or abroad. These sub-contractors will help in further streamlining the toll collection process.

Conditions in NOC and fitness certificate on outstanding toll

The MLFF system will not only deduct toll fee from the Fastag wallet but will also identify vehicles that do not have a Fastag or whose tag is defective. The information of such vehicles will be shared with the central vehicle database ‘Vahan’, making it mandatory for drivers to pay the outstanding toll. If they do not pay the outstanding amount, they will not get NOC and fitness certificate, which will bring more transparency in the process.

Toll rates not yet decided

Toll rates have not been decided yet for the 28 km long Dwarka Expressway. Toll will be collected only from the tolling point located on the Delhi-Gurgaon border. The successful bidder will get the right to collect toll for three years and will have to implement this system within three months of getting the contract.

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