Kerala to Introduce Tolls on KIIFB Roads

05 Feb 2025 CW Team

The Kerala government is set to implement toll collection on roads constructed under the Kerala Infrastructure Investment Fund Board (KIIFB) scheme. This initiative comes as part of the government's efforts to address the state’s ongoing financial crisis, leveraging toll revenues to support infrastructure financing.

The Kerala Infrastructure Investment Fund Board (KIIFB) plays a critical role in financing large-scale infrastructure projects across the state, sourcing funds from the market to support key development initiatives. According to reports, the toll collection plan will apply to roads with investments exceeding ?500 million (Rs. 50 crore), aimed at generating steady revenue streams.

The Kerala Cabinet has reportedly approved the legal framework for the toll collection initiative, which will follow the toll collection model used by the National Highways Authority of India (NHAI). However, local residents will be exempt from paying tolls on these roads, ensuring that communities living near the toll zones are not burdened by the charges.

While the Cabinet has approved the framework, the government has kept further details of the toll collection system confidential for the time being. The decision to introduce tolls on KIIFB-funded roads is seen as a strategic move to bolster the state’s finances. Kerala, facing a severe financial crisis, is looking to mimic the toll revenue model of NHAI to alleviate its economic challenges.

This initiative aligns with the government's broader vision of improving infrastructure sustainability while addressing its fiscal concerns. As the legal framework progresses, more information about its implementation will be shared with the public.

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