The Municipal Corporation of Delhi (MCD) has sought annual financial compensation of Rs 9 billion from the Delhi government if toll collection at the Capital’s borders is discontinued. The request comes amid a push by the Union Ministry of Road Transport to remove toll booths, citing traffic congestion, delays, and productivity loss.

While scrapping toll barriers may improve vehicle movement and reduce emissions from idling traffic, it could also dismantle a key revenue stream for the MCD. To mitigate the impact, the corporation has proposed two alternatives: an annual grant adjusted for inflation or a hike in property transfer duty within Delhi.

In a formal letter to the Urban Development Department, the MCD argued that compensation is necessary if toll tax—levied under the Delhi Municipal Corporation Act of 1957—is abolished. Currently, the toll applies to commercial vehicles entering Delhi, while an additional Environment Compensation Charge (ECC) is collected in line with Supreme Court orders to tackle air pollution.

Introduced in 2015, the ECC not only generates revenue but also serves as a deterrent against the entry of polluting trucks, encouraging investment in cleaner alternatives. However, despite electronic payment becoming mandatory in 2019, physical verification of goods for ECC continues, causing congestion at major entry points like Ghazipur, Rajokri, Badarpur, and Kalindi Kunj. Over 85 per cent of inbound traffic passes through just 13 key checkpoints.

Policy experts suggest that eliminating toll barriers could benefit daily commuters and lower emissions, but warn that without a viable revenue replacement, Delhi could jeopardise essential civic services and environmental programmes. The move underscores the tension between enhancing urban mobility and maintaining financial sustainability.

Officials noted that toll and ECC collections support not just traffic management but also critical infrastructure and pollution control initiatives. Any loss of this income must be offset to preserve the city’s eco-friendly objectives.

The Delhi government has not yet responded to the MCD’s proposal, but the issue is likely to become a focal point in urban policy debates. For a city grappling with toxic air, traffic congestion, and the pressures of rapid urbanisation, transport reforms must align with sustainable financing and equitable governance.

Ultimately, Delhi faces a defining choice—streamline travel at the cost of municipal income, or devise integrated solutions that ensure both commuter convenience and financial support for clean, green infrastructure.