Reforming Toll Collection: An Analysis of the Public Accounts Committee Report
UPSC Relevance
Prelims: Indian Polity and Governance (Parliamentary Committees - PAC), Indian Economy (Infrastructure), Science and Technology (FASTag).
Mains:
GS Paper 2: Parliament and State legislatures—structure, functioning, conduct of business, powers & privileges and issues arising out of these; Parliamentary Committees.
GS Paper 3: Infrastructure: Roads.
Key Highlights from the News
The Public Accounts Committee (PAC) of the Parliament recommended significant reforms in the toll collection system on national highways.
The main recommendation is to stop or significantly reduce toll collection once the construction and maintenance costs (cost recovery) are recovered.
The PAC described the current system of indefinite toll collection, regardless of road quality or traffic volume, as a "regime of perpetual tolling".
The committee suggested establishing an independent regulatory authority to ensure transparency in fixing and collecting toll rates.
The PAC also recommended toll reimbursements for commuters during road construction.
Steps should be taken to avoid traffic jams caused by errors in FASTag readings.
According to the current policy (NH Fee Rules, 2008), toll rates are not linked to construction costs. Additionally, a 2008 amendment empowers the government to collect tolls indefinitely.
After the concession period ends, the collected toll amount goes to the Consolidated Fund of India.
The Ministry of Road Transport has initiated a study in collaboration with NITI Aayog to revise the toll rate determination framework.
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