The National Highways Authority of India (NHAI) has achieved significant savings of Rs 20.62 billion in toll collection costs during the financial year 2024–25, marking a major improvement in efficiency and transparency at public-funded toll plazas.

According to official data, the cost of toll collection fell from Rs 47.36 billion in FY2023–24 to Rs 26.74 billion in FY2024–25, a 44 per cent reduction. In terms of revenue share, the cost dropped from 17.27 per cent to 9.27 per cent, underscoring enhanced operational performance.

In FY2023–24, toll agencies collected Rs 27,417 crore, of which Rs 226.81 billion was remitted to NHAI. In FY2024–25, total toll collections rose to Rs 288.23 billion, while remittances to NHAI climbed to Rs 261.49 billion.

NHAI attributed this achievement to targeted reforms and improved contract management. Key measures included strict monitoring of contracts, removal of the deemed three-month extension clause, timely tendering, and ensuring most contracts were awarded for one-year durations rather than short-term renewals.

The authority also limited premature terminations to three cases per financial year and barred contractors who sought early termination from rebidding at the same plaza.

To improve industry coordination, NHAI held regular consultations with the All India User Fee Collection Federation, helping address operational challenges and build confidence among toll operators. The timely release of performance securities and bank guarantees further improved liquidity for contractors, enabling more competitive bidding.

A new ‘Windfall Gain’ clause was introduced in tolling agreements to ensure fairness. Under this provision, if the 15-day moving average of toll collections exceeds 40 per cent of the remittance paid to NHAI, the contract can be terminated to prevent excessive profits.

The Ministry of Road Transport and Highways (MoRTH) stated that these comprehensive measures have not only improved tolling efficiency but also strengthened NHAI’s financial performance and accountability.