NHAI Saves Rs 20.62 Billion in Toll Collection Costs

04 Nov 2025 CW Team

According to official data, the cost of toll collection dropped sharply from Rs 47.36 billion in FY 2023–24 to Rs 26.74 billion in FY 2024–25. This represents a decline from 17.27 per cent to 9.27 per cent of total toll revenue within a year, marking a substantial efficiency gain.

The term ‘cost of toll collection’ refers to the difference between the toll fee collected by agencies and the amount actually remitted to NHAI.

In FY 2023–24, toll agencies collected Rs 274.17 billion, of which Rs 226.81 billion was transferred to NHAI. In FY 2024–25, total toll revenues rose to Rs 288.23 billion, while remittances to NHAI increased to Rs 261.49 billion, indicating higher efficiency and stronger financial discipline despite greater overall collections.

Officials credited these savings to a series of reform measures, including close monitoring of toll contracts, removal of the three-month deemed extension clause, timely tendering, and preferring one-year contracts over short-term three-month agreements. These changes reduced revenue leakages and strengthened transparency across toll operations.

To curb inefficiencies, NHAI limited premature termination requests to three per financial year and barred contractors who opted for early exits from rebidding for the same toll plazas.

The authority also held regular consultations with the All India User Fee Collection Federation to address industry challenges and ensure fair participation. The timely release of performance securities and bank guarantees further enhanced contractors’ liquidity, allowing for more competitive and higher-value bids.

Additionally, a ‘Windfall Gain’ clause was introduced to prevent excessive profits. Under this clause, if the 15-day moving average of toll collections exceeds 40 per cent of the remittance agreed with NHAI, the contract may be terminated to maintain fairness and transparency.

These collective measures have bolstered NHAI’s financial performance and reinforced accountability across India’s national tolling ecosystem.

The National Highways Authority of India (NHAI) has reported significant cost savings of Rs 20.62 billion in toll collection operations at public-funded toll plazas during the financial year 2024–25, underscoring a major improvement in operational efficiency and financial management. According to official data, the cost of toll collection dropped sharply from Rs 47.36 billion in FY 2023–24 to Rs 26.74 billion in FY 2024–25. This represents a decline from 17.27 per cent to 9.27 per cent of total toll revenue within a year, marking a substantial efficiency gain. The term ‘cost of toll collection’ refers to the difference between the toll fee collected by agencies and the amount actually remitted to NHAI. In FY 2023–24, toll agencies collected Rs 274.17 billion, of which Rs 226.81 billion was transferred to NHAI. In FY 2024–25, total toll revenues rose to Rs 288.23 billion, while remittances to NHAI increased to Rs 261.49 billion, indicating higher efficiency and stronger financial discipline despite greater overall collections. Officials credited these savings to a series of reform measures, including close monitoring of toll contracts, removal of the three-month deemed extension clause, timely tendering, and preferring one-year contracts over short-term three-month agreements. These changes reduced revenue leakages and strengthened transparency across toll operations. To curb inefficiencies, NHAI limited premature termination requests to three per financial year and barred contractors who opted for early exits from rebidding for the same toll plazas. The authority also held regular consultations with the All India User Fee Collection Federation to address industry challenges and ensure fair participation. The timely release of performance securities and bank guarantees further enhanced contractors’ liquidity, allowing for more competitive and higher-value bids. Additionally, a ‘Windfall Gain’ clause was introduced to prevent excessive profits. Under this clause, if the 15-day moving average of toll collections exceeds 40 per cent of the remittance agreed with NHAI, the contract may be terminated to maintain fairness and transparency. These collective measures have bolstered NHAI’s financial performance and reinforced accountability across India’s national tolling ecosystem.

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