Institutional Reforms Enable NHAI to Reduce Toll Collection Costs by Rs. 2,062 Crore in FY 2024–25
SDG 9: Industry, Innovation & Infrastructure | SDG 12: Responsible Consumption & Production
Institutions: Ministry of Road Transport & Highways
The National Highways Authority of India (NHAI) reports a sharp decline in its toll-collection cost at publicly-funded toll plazas in FY 2024-25. The cost of toll collection dropped from ₹4,736 crore in FY 2023-24 to ₹2,674 crore in FY 2024-25, translating into a savings of ₹2,062 crore. The cost-to-toll-fee ratio also improved significantly, falling from 17.27 % to 9.27 %.
These savings were achieved through operational reforms including:
tighter contract terms (ending deemed extensions)
reducing short-term three-month toll-collection contracts
introducing a “windfall gain” clause for agencies collecting excess tolls
closer bidding oversight via the All-India User Fee Collection Federation.
The reduction in toll-collection cost supports India’s highway-infrastructure efficiency and export of public-services best practices. It aligns with the government’s target of reducing overheads in transport infrastructure under flagship frameworks such as Bharatmala and Make in India by cutting operational cost, improving tolling transparency and enabling faster highway expansion.
Relevant Question for Policy Stakeholders:
To what extent can NHAI’s cost-optimisation reforms in toll operations serve as a model for institutional efficiency across other public infrastructure agencies?
Follow the full news here: Institutional Reforms Enable NHAI to Reduce Toll Collection Costs