Government to Finalise Toll Rates and Plaza Sites Before Construction

14 Jul 2026 CW Team

The Union road transport and highways ministry has directed that toll rates and toll plaza locations must be finalised before construction of national highway projects begins, aiming to avoid costly redesigns and regulatory disputes after completion. Under the National Highways Fee Rules, 2008, toll plazas are generally not permitted within 60 km of another plaza or within 10 km of municipal limits unless a specific relaxation is granted. The ministry has moved to enshrine those location and distance norms in project approvals to reduce post-construction relocations.

The ministry has required that all proposals seeking relaxation under the rules, including requests to relocate toll plazas, be examined by a newly constituted toll committee prior to the start of work. Sources familiar with the matter said the instruction is intended to provide a formal clearance path that must be completed before concessionaires begin construction. Officials noted past cases in which concessionaires built plazas that were later found to breach prescribed norms, leaving little scope for remedial action.

Requiring early clearance is likely to limit costly corrective measures and arbitration over user fees, and to bring greater predictability to project delivery and revenue modelling. The move should also reduce litigation risk for both authorities and private operators by clarifying compliance at the design stage. Ministries and concessionaires will need to integrate the committee process into project timelines and contractual milestones.

The toll committee is to scrutinise exemptions and relocation proposals and to issue a recommendation before construction contracts are finalised. The ministry has thus signalled tighter scrutiny of deviations from standard norms as part of procurement and approval procedures. Implementing the directive will require closer coordination between project engineers, legal teams and regulatory authorities from the outset.

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