NHAI Cuts Toll Collection Costs by Rs 20.62 Billion

04 Nov 2025 CW Team

According to official data, the cost of toll collection dropped from Rs 47.36 billion in FY 2023–24 to Rs 26.74 billion in FY 2024–25 — a 44 per cent decline. As a share of total toll revenue, collection costs reduced from 17.27 per cent to just 9.27 per cent, marking a sharp improvement in operational efficiency.

During FY 2023–24, toll agencies collected Rs 274.17 billion, of which Rs 226.81 billion was remitted to NHAI. In FY 2024–25, total toll revenue rose to Rs 288.23 billion, while the amount remitted to NHAI increased significantly to Rs 261.49 billion.

NHAI attributed this success to targeted reforms and strengthened contract management practices. These included closer monitoring of contracts, elimination of the deemed three-month extension clause, timely tendering, and ensuring that most toll collection contracts were awarded for one-year durations instead of shorter three-month periods.

The authority also worked to minimise premature terminations, allowing no more than three such requests per financial year, and restricting those contractors from rebidding at the same plaza.

To further streamline operations, NHAI held regular consultations with the All India User Fee Collection Federation to address industry challenges and boost confidence among toll operators. The timely release of performance securities and bank guarantees also improved liquidity, allowing contractors to make higher and more competitive bids.

Additionally, a new ‘Windfall Gain’ clause was introduced to prevent undue profits. Under this clause, 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 uphold fairness and transparency.

The Ministry of Road Transport & Highways noted that these comprehensive measures have significantly enhanced tolling efficiency and reinforced NHAI’s financial stability.

In a major milestone demonstrating improved efficiency and transparency in toll operations, the National Highways Authority of India (NHAI) has announced a reduction of Rs 20.62 billion in toll collection costs at public-funded toll plazas during the financial year 2024–25. According to official data, the cost of toll collection dropped from Rs 47.36 billion in FY 2023–24 to Rs 26.74 billion in FY 2024–25 — a 44 per cent decline. As a share of total toll revenue, collection costs reduced from 17.27 per cent to just 9.27 per cent, marking a sharp improvement in operational efficiency. During FY 2023–24, toll agencies collected Rs 274.17 billion, of which Rs 226.81 billion was remitted to NHAI. In FY 2024–25, total toll revenue rose to Rs 288.23 billion, while the amount remitted to NHAI increased significantly to Rs 261.49 billion. NHAI attributed this success to targeted reforms and strengthened contract management practices. These included closer monitoring of contracts, elimination of the deemed three-month extension clause, timely tendering, and ensuring that most toll collection contracts were awarded for one-year durations instead of shorter three-month periods. The authority also worked to minimise premature terminations, allowing no more than three such requests per financial year, and restricting those contractors from rebidding at the same plaza. To further streamline operations, NHAI held regular consultations with the All India User Fee Collection Federation to address industry challenges and boost confidence among toll operators. The timely release of performance securities and bank guarantees also improved liquidity, allowing contractors to make higher and more competitive bids. Additionally, a new ‘Windfall Gain’ clause was introduced to prevent undue profits. Under this clause, 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 uphold fairness and transparency. The Ministry of Road Transport & Highways noted that these comprehensive measures have significantly enhanced tolling efficiency and reinforced NHAI’s financial stability.

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