Karnataka government plans to impose toll on ten highways

In response to public outrage over high fuel prices, the government wants to impose a toll on ten major state highways. The Step is expected to bring in Rs 43 crore per year for the Karnataka Road Development Corporation Ltd (KRDCL), which will be used to upgrade these highways.

KRDCL has released a request for proposals from companies involved in setting up toll booths. “The phase will take two months to complete, and toll collection is expected to begin in June,” KRDCL superintendent engineer C Ravindranath said.

The ten sections were built as part of the Karnataka State Highway Improvement Project. KRDCL has built 26 highways in total, with tolls being paid on 16 of them. The ten stretches are the last to be brought under the toll net, according to Ravindranath.

To help the state-run entity sustain infrastructure, the Siddaramaiah government agreed to levy a user fee on roads improved by KRDCL. According to Ravindranath, toll collection is the only way for KRDCL to repay loans taken for road construction.

The Ministry of Road Transport and Highways demanded that all toll lanes on all national highways be converted to ‘FASTag lanes’ in July of last year.

In November, the number of FASTag users in the country exceeded two million, reflecting a 400 percent rise in a year. According to an NHAI statement from November, FASTag accounts for nearly three-quarters of total toll collection and has increased total collection to Rs 92 crore per day from Rs 70 crore per day a year earlier.

Toll revenue for FY 2020 was around Rs 24,000 crore, and with the implementation of FASTags in January this year, toll revenue for FY 2021 is projected to be around Rs 34,000 crore.