In a rare case of government efficiency making accountants smile and taxpayers choke on disbelief, the National Highways Authority of India (NHAI) has announced a whopping ₹2,062 crore reduction in its cost of toll collection during FY 2024–25.
That’s right — the cost of tolling has fallen from ₹4,736 crore in FY 2023–24 to just ₹2,674 crore this year, marking a whopping 56% drop. In other words, NHAI just did what no one thought possible: collected more money while spending much less to do it.
The Road Less Expensive
For the uninitiated, the “Cost of Toll Collection” is essentially what tolling agencies charge to collect tolls on behalf of NHAI. Think of it as the service fee for ensuring every beep at the FASTag lane turns into a neat entry in NHAI’s ledger.
In FY 2023–24, toll agencies collected ₹27,417 crore but remitted ₹22,681 crore — meaning a decent chunk stayed as operational cost. Fast forward a year, and while collections rose to ₹28,823 crore, NHAI’s share ballooned to ₹26,149 crore. That’s a cleaner, meaner, and leaner toll machine.
How NHAI Turned the Table (and the Tollbooth)
This financial fast lane didn’t appear by magic. NHAI rolled out a host of initiatives:
- Deleted “deemed extension” clauses, which often let contractors nap through renewal periods.
- Cut short-term contracts, ensuring fewer quick 3-month gigs and more disciplined annual contracts.
- Banned habitual quitters, preventing contractors who exited early from bidding on the same plaza again (karma hits back, even at toll booths).
- Introduced the ‘Windfall Gain’ clause, which essentially says — “If you start earning too much, we’ll take your keys.”
Collaboration, Not Collision
Adding a dash of diplomacy to its fiscal prudence, NHAI also engaged closely with the All India User Fee Collection Federation — the official club of toll collectors who now feel seen, heard, and occasionally audited. Timely release of bank guarantees and performance securities kept morale high and bids higher.
Driving Toward Transparency
Behind the humour and the hard hats, this achievement reflects a serious shift — NHAI’s focus on efficiency, transparency, and accountability in tolling operations. The result? Better value for public funds, smoother highways, and fewer reasons for drivers to roll their eyes while rolling up to the booth.
At this pace, the only thing faster than a FASTag scan might just be NHAI’s fiscal discipline.
