NHAI Cuts Toll Collection Costs by Rs 20.62 Billion in FY2025

07 Nov 2025 CW Team

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.

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.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..