Demonetisation hits toll collections: NHAI to bear Rs 1,200 crore loss

The National Highways Authority of India (NHAI) has suffered a loss of around Rs 1,200 crore due to the suspension of user collection fees on toll plazas on National Highways.

After the demonetisation of currency notes of Rs 500 and Rs 1,000, the government had announced the exemption of toll on national highways with effect from November 9, 2016 (17:30 hrs) to December 2, 2016 (midnight).

NHAI issued the necessary instructions to all concessionaires including BOT, OMT operators and commuters have been allowed to travel through the user fee plazas without paying any fee from November 9, 2016 (17:30 hrs.) to December 2, 2016 (midnight).

According to Pon. Radhakrishnan, minister of state for Road Transport and Highways, “The average toll collection per day is Rs 51.59 crore from the fee plazas under NHAI, which is not accruing to the government with effect from November 9, 2016 (17:30 hrs).”

Taking into account the average toll collection and the 23 days of the exemption, the income loss to NHAI due to the suspension of toll collection is around Rs 1,200 crore.

Motorists happy for a change

The exemption of toll had given motorists a reason for cheer. Before payment of toll was exempted, toll plazas witnessed chaotic conditions as drivers ran short of cash or change for Rs 500 and Rs 1,000 notes. Though tolls plazas had been instructed to accept all notes, there was utter confusion at many places with long queues of all kinds of vehicles witnessed within city toll-roads and on highways.

Moreover, not just shortage of change but many motorists were seen wanting to pay the toll with larger bills in a bid to exchange them for notes of lower denomination. Many toll booths complained that commuters were handing over Rs 1,000 notes but would not accept Rs 500 notes as change. This soon led to the booths running out of the paper currency and, therefore, were not left with any money to return.

Tolls to go cashless

Meanwhile, to tackle the cash crunch, the Ministry of Road Transport and Highways (MoRTH) is implementing Electronic Fee Collection (EFC) system on National Highways in the country to allow cashless transactions.

In order to remove bottlenecks and ensure seamless movement of traffic and collection of fee as per notified rates, a cashless payment mechanism (FASTag) was rolled out based on the recommendations of a committee constituted under Nandan Nilekani.

Further, reports suggest that NHAI will also equip toll points with electronic Point of Sale (ePoS) machines as toll collection resumes from December 2, 2016 (midnight). As of November 23, 2016, 347 fee plazas out of 366 on national highways across the country have been integrated and made operational for EFC transaction.