Ministry To Require Toll Rates And Plaza Locations Before Construction

14 Jul 2026 CW Team

The Union road transport and highways ministry will overhaul the process for fixing user fees on national highway projects by requiring that toll rates and toll plaza locations be approved before construction begins. The move is aimed at preventing costly relocations and regulatory disputes after projects are completed, according to two people aware of the matter. It reflects a push to strengthen pre-construction scrutiny and reduce post-award corrections.

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 directed that all proposals seeking such relaxations, including requests for toll plaza relocation, must be examined by a newly constituted toll committee prior to the start of construction. The committee will assess compliance with distance and location norms and recommend approvals where justified.

The decision follows repeated instances in which concessionaires constructed toll plazas that were later found to breach prescribed location or distance norms, leaving authorities with little scope for corrective action. By requiring pre-approval, the ministry intends to minimise redesign costs, limit regulatory disputes and reduce the potential for contract renegotiation. The measure should also improve transparency in how exemptions are considered and recorded.

The change will be reflected in contracting documents and project clearances so that concessionaires must secure committee clearance before mobilising for construction. Implementation will require closer coordination between project developers, the ministry and local authorities to ensure municipal limits and other constraints are correctly applied. Officials said the step will help preserve project timelines and fiscal prudence. Stakeholders will welcome clarity.

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