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13th February 2025 (13 Topics)

Toll Tax and National Highways

Context

The Parliament’s Public Accounts Committee has directed the government to review the existing toll tax rules, especially in light of the rise in vehicular traffic and the failure of concessionaires to comply with their contractual obligations.

Current Toll Tax System:

  • Toll taxes on National Highways are currently levied based on the base rate of fee per kilometer as prescribed in the National Highways Fee Rules, 2008.
  • In India, the tolling is generally under an open system, wherein fee payable is a fixed amount based on the length of stretch under one project
  • At present, there are over 1,000 toll gates in India.
  • Currently, the FASTag system is being used to deduct toll at plazas.
    • FASTags were made mandatory for all four-wheelers from February 2021.
    • It is an electronic toll collection system in which ‘Radio Frequency Identification’ (RFID) technology is used to make toll payments.
    • The FASTag contains a small RFID chip that communicates wirelessly with toll booth readers.
  • Issues:
  • Increase in Vehicular Traffic: Since 2008, there has been an exponential increase in the number of vehicles using National Highways.
  • Non-compliance by Concessionaires (private companies managing toll plazas)
  • Despite the introduction of FASTags (electronic toll collection system), long traffic jams at toll gates continue to be a problem.

Fact Box:

National Highway Authority of India (NHAI)

  • Operationalised in: 1995
  • National Highway Authority of India (NHAI) was constituted under the National Highways Authority of India Act, 1988. 
  • NHAI is a Central Authority to develop, maintain and manage the National Highways entrusted to it by the Government of India.
  • It is responsible for overseeing the entire road network, including the policies and procedures pertaining to toll taxes.
  • Ministry: It is under the administrative control of Ministry of Road Transport and Highways.
  • National Highways in India: There are about 599 national highways in India. The highways constituted 2.04% of India's total road network. Nevertheless, they maintained about 40% of road traffic. 
    • Classification: These highways are classified into various categories such as
      • North-South Corridors
      • East-West Corridors
      • Golden Quadrilateral (connecting Delhi, Mumbai, Chennai, and Kolkata)
      • 3-D Highways (highway with 3 digit number, secondary branch of the main highway)

PYQ

Q1: With reference to India's projects on connectivity, consider the following Statements: (2023)

  1. East-West Corridor under Golden Quadrilateral Project connects Dibrugarh and Surat.
  2. Trilateral Highway connects Moreh in Manipur and Chiang Mai in Thailand via Myanmar.
  3. Bangladesh - China - India - Myanmar Economic Corridor connects Varanasi in Uttar Pradesh with Kunming in China.

How many of the above statements are correct?

  1. Only one
  2. Only two
  3. All three
  4. None

Solution: (d)

Q2. Consider the following pairs: (2014)

National Highway : Cities connected

  1. NH 4 : Chennai and Hyderabad
  2. NH 6 : Mumbai and Kolkata
  3. NH 15 : Ahmedabad and Jodhpur

Which of the above pairs is/are correctly matched?

  1. 1 and 2 only
  2.  3 only
  3. 1, 2 and 3
  4. None

Solution: (d)

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