India puts on hold proposed hike in road toll charges as elections approach

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01/04/2024 14:47

By Manoj Kumar
       NEW DELHI, April 1 (Reuters) - India on Monday put on
hold a proposed hike in road toll charges, in a move that will
be welcomed by millions of motorists, truckers and commercial
vehicle owners just ahead of a general election.
    The annual hike in road toll charges would have benefited
highway operators like IRB Infrastructure Developers  IRBI.NS 
and Ashok Buildcon Ltd  ABDL.NS  while putting an extra burden
on commuters and businesses who could see freight rates rise as
a result.
    "The revision of user fee (toll) rates with effect from
April 1 has been put on hold after taking permission from the
Election Commission," a senior official at National Highways
Authority of India told Reuters.
    India will hold a general election in seven phases from
April 19 to early June. Prime Minister Narendra Modi and his
regional allies are aiming for a comfortable win against an
alliance of two dozen opposition parties. 
    Highway operators have already put notices in local
newspapers about hikes in toll charges of 3% to 5% at nearly
1,100 toll plazas from April 1. Toll charges are revised
annually in line with inflation. 
    Opposition parties and commuters had criticised the proposed
toll hikes as both tolls and fuel prices have gone up
significantly since Modi came to office.
    The government says hikes in toll charges and taxation on
fuel products help pay for the expansion of national highways.
    Separately, the election commission also allowed the
government to put on hold the proposed annual hike in
electricity tariffs till the completion of the election process,
the government statement said.
    India's toll collections have jumped to more than 540
billion rupees ($6.5 billion) in the 2022/23 fiscal year from
252 billion in 2028/19, helped by a rise in road traffic as well
as by increases in the number of toll plazas and charges. 
 ($1 = 83.3600 Indian rupees)

 (Reporting by Manoj Kumar; Editing by Hugh Lawson)
 ((manoj.kumar@thomsonreuters.com; +919810286200;
Twitter:@manojgulnar;))