Toll Rate Policies of India: A Review, Comparison, and Inferences

Abstract

Tolling as a method of financing transportation systems is becoming increasingly common worldwide. The collection of fees from road users under public-private partnership agreements is based on prescribed toll fees/rates. According to the prevailing level of human, traffic, environmental and economic development, these toll rate policies vary from country to country. In India, road toll rates are prescribed by the Gazette of India: Extraordinary (Part II Section 3 sub-section [i]) published by the Ministry of Road Transport and Highways under the National Highways Act, 1956. Each year, the toll rates for each toll facility in India are set as per the National Highway Fee (Determination of Rates and Collection) Rules, 2008. There is now a need to revisit the policies on fixing toll rates in India. The present study presents a critical literature review of the toll rate policies in India and other developed and developing countries. The study provides a comparison of the different vehicle classes considered for toll rates and it is found that most of the classifications are based on gross vehicle weight (GVW) and on number of wheels and axles. Additionally, the toll rates for different nations are compared and it is found that Indian toll rates are lower than those of the developed countries. Finally, the research gaps are given for further research.