Lok Sabha Question No. 4449 (UNSTARRED), answered on 2026-03-19
Subject: Toll Plazas in Kerala
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Adv K. Francis George

be pleased to state:

- (a) whether the Government is aware concerns regarding continued toll collection on National Highways after recovery of project costs;
- (b) the details of toll plazas currently operational, including concession periods and revenue collected during the last five years in the State of Kerala;
- (c)  whether  any  review  has  been  conducted  regarding  transparency  in toll  revenue  auditing  and  cost  recovery  mechanisms  and  if  so,  the findings thereof;
- (d)  whether  the  Government  proposes  to  establish  an  independent  toll tariff regulatory authority or introduce independent toll audits; and
- (e)  the  measures  proposed  to  rationalise  toll  charges  and  ensure transparency and accountability in toll collection system?

## ANSWER

THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS (SHRI NITIN JAIRAM GADKARI)

## GOVERNMENT OF INDIA

## MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA UNSTARRED QUESTION NO. 4449

ANSWERED ON 19 TH  MARCH, 2026

## TOLL PLAZAS IN KERALA

4449.  ADV K. FRANCIS GEORGE:

## Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

- (a)  Collection  of  user  fee  at  fee  plazas  on  National  Highways  is  not related  to  the  recovery  of  project  development  cost.    The  fee  in accordance with the applicable National Highways Fee Rules is collected by the concessionaire till the end of the concession period, and after the concession period is over, the fee is collected on behalf of  the Central Government  as per the fee specified under the provisions of NH Fee Rules, 2008 on the date of transfer of such section of the National Highway,  bridge,  tunnel  or  bypass,  as  the  case  may  be,  to  be  revised annually.    The  revenue  collected  by  the  Central  Government  from  user fee  collection  is  deposited  in  Consolidated  Fund  of  India  (CFI)  and  the fund  provided  through  budgetary  allocation  are  utilised  for  further maintenance, development and augmentation of National Highways.
- (b)  Details  of  fee  plazas  currently  operational,  including  concession periods and revenue collected during the last five years in the State of Kerala are attached at Annexure-I.
- (c)  The National Highways Fee (Determination of Rates and Collection) Rules, 2008, as amended, provide a transparent framework for levy and collection of user fee, with rates linked to the length of the highway and type of vehicle uniformly across  the country. In order to  ensure operational integrity and transparency in user fee collection, the Government has instituted the following measures:
1.  Electronic  Toll  Collection  (ETC):  Nationwide  implementation  of FASTag-based ETC to minimize cash handling, reduce human intervention, and enhance transparency in toll transactions.
2. System Audits and Monitoring: Regular system audits, reconciliation of toll data, and real-time monitoring through centralized dashboards and CCTV surveillance at toll plazas.
3.  Independent  Audits:  Engagement  of  independent  engineers  and auditors for periodic inspection and verification of toll operations and revenue.

4. Grievance Redressal Mechanism: Establishment of a robust grievance  redressal  system  for  road  users,  including  helplines  and online complaint portals, with time-bound resolution.
5.  Penal Provisions: Imposition of penalties, recovery of losses, and other contractual actions against defaulting concessionaires/fee collection  agencies  in  cases  of  proven  irregularities  or  revenue leakage.
6.  Standard  Operating  Procedures  (SOPs):  Issuance  of  SOPs  and circulars for toll operations, staff training, and strict compliance with concession agreements.
7. Vigilance and Enforcement: Action through vigilance inquiries and coordination with law enforcement agencies wherever required.

These  measures  have  resulted in significant improvement  in transparency, and effective resolution of disputes in toll collection at fee plazas.

- (d)    There  is  no  such  proposal  under  consideration  to  establish  a separate,  independent  Toll  Tariff  Regulatory  Authority  as  user  fee  is fixed in accordance under law and the revenue collected is deposited in the  Consolidated  Fund  of  India  in  case  of  public  funded  toll  plaza. However,  regular audit of user fee plazas  are  conducted  by the Comptroller  &  Auditor  General  including  user  fee  plazas  operated  by concessionaire.
- (e)  The  Government  from  time  to  time  has  reviewed  the  tolling  policy with  the  objective  of  ensuring  a  balanced  approach  between  revenue requirements  for  highway  development  and  minimizing  burden  on  road users. Further, in order to reduce the burden on road users, Government has made various provisions through following amendments:
- (i)  GSR  437(E)  dated  01.07.2025  to  restrict  user  fee  for  highways  with more structure length.

(ii)  GSR  01(E)  dated  31.12.2025  for  reduction  of  rates  in  case  of  up gradation from 2 lane paved shoulder highway to 4 or more lane.

(iii) G.S.R. 388 (E) dated 17.06.2025 introducing an Annual Pass for noncommercial cars, jeeps, and vans. This scheme offers 200 NH fee plaza crossings  or  one  year  validity,  whichever  is  earlier,  by  payment  of  Rs. 3000/- (Rupees three thousand).

(iv) G.S.R. 734 (E) dated 03.10.2025 for reduction in applicable user fee for vehicles without FASTag or active FASTag vehicles from 2 times to 1.25 times, given the user opts for payment through UPI;

(v)  G.S.R. 107 (E) dated 04.02.2026 for the fee payable for the use of a national  expressway  that  is  operational  for  only  a  part  of  its  notified length shall be levied at a rate of one time of the applicable fee instead of 1.25 times.

Furthermore,  all  the  FASTag  transactions  are  processed  in  a secured ecosystem involving Toll Management System Software, Acquirer Bank at fee plaza, National Payment Corporation of India (NPCI) as Central Clearing House (CCH) and FASTag Issuer Bank. The transaction  involves  a  transparent  process  wherein  the  deducted  user fee  (Toll)  is  informed  to  the  highway  users  and  recorded  in  a  central repository. The Electronic Toll Collection (ETC) system is designed such that no FASTag transaction can take place without the participation of all  three  stakeholders  i.e.,  Acquirer  Bank  at  user  fee  plaza,  NPCI  and Issuer Bank.

In addition to above, to ensure operational integrity and transparency  in  user  fee  collection,  NHAI  vide  Policy  Circular  dated 25.01.2024  has  issued  a  Standard  Operating  Procedure  for  ensuring Operational  Transparency  in  Tolling  Operation.    The  SOP  includes provisions  of  surprise  checks  at  fee  plazas  and  regular  monitoring  to ensure that all transactions at fee plazas (Cash/FASTag) are processed through the Toll Management System Software.

## ANNEXURE-I

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  4449 FOR  ANSWER  ON  19.03.2026 ASKED BY ADV K. FRANCIS GEORGE REGARDING TOLL PLAZAS IN KERALA.

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Details of fee plazas currently operational, including concession periods and revenue collected during the last five years in the state of Kerala:

| S. N o.   | Name of Fee Plaza      | Type of Fee plaza   | Concession/ Contract Period   | Revenue Collected (Rs in Cr)   | Revenue Collected (Rs in Cr)   | Revenue Collected (Rs in Cr)   | Revenue Collected (Rs in Cr)   | Revenue Collected (Rs in Cr)   | Revenue Collected (Rs in Cr)   |
|-----------|------------------------|---------------------|-------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|           |                        |                     |                               | 2020- 21                       | 2021- 22                       | 2022- 23                       | 2023- 24                       | 2024- 25                       | 2025- 26                       |
| 1         | Kumbalam fee Plaza     | PF                  | 06-12-2025 to 05-05-2026      | 6.00                           | 7.05                           | 7.74                           | 52.73                          | 39.39                          | 30.25                          |
| 2         | Poonarimangalam        | PF                  | 11-06-2025 to 11-06-2026      | 15.37                          | 15.87                          | 22.23                          | 24.46                          | 27.06                          | 25.92                          |
| 3         | Thiruvallam            | PF                  | 30-01-2026 to 30-01-2027      |                                | 1.11                           | 12.53                          | 23.74                          | 26.15                          | 26.07                          |
| 4         | Paniyankara fee Plaza  | BOT                 | 24-08-2009 to 14-09-2032      |                                | 7.52                           | 146.0 2                        | 163.1 3                        | 162.4 6                        | 148.7 3                        |
| 5         | Paliyekkara fee Plaza  | BOT                 | 22-09-2009 to 21-06-2028      | 103.5 3                        | 116.3 6                        | 162.9 5                        | 186.3 4                        | 187.7 8                        | 130.0 2                        |
| 6         | Pampampallam fee Plaza | BOT                 | 18-05-2015 to 17-11-2031      | 55.69                          | 67.75                          | 98.88                          | 106.5 8                        | 107.7 7                        | 101.3 3                        |
| 7         | Thiruvangad            | PF                  | 24-08-2025 to 24-08-2026      |                                |                                |                                | 1.33                           | 27.39                          | 29.66                          |
| 8         | Devikulam Plaza        | PF                  | 19-01-2026 to 19-01-2027      |                                |                                |                                |                                | 1.21                           | 2.34                           |
| 9         | Olavanna Fee Plaza     | PF                  | 15-01-2026 to 15-04-2026      |                                |                                |                                |                                |                                | 13.83                          |
| 10        | Vettichira fee Plaza   | PF                  | 30-01-2026 to 30-04-2026      |                                |                                |                                |                                |                                | 8.01                           |

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