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Issues Affecting Road Transport Sector – An Interview With Bal Malkit Singh: Part 1 “Ever Frustrating TOLL Booths of India” interview, issue with road transport, issue with road transport india, Indian road transport, road transport statistics, toll naka, factors affecting road transport india


The President of “All India Motor Transport Congress (AIMTC) was interviewed by TruckStrategy.com where he addressed various Issues Affecting Road Transport Sector. In this part he discuss about the ever grooming virus called TOLL. Here is what he has to say to the people of India.

Roads that are our National Property, which belong to the PEOPLE OF INDIA. The Government is selling our ROADS to private road builders and contractors who continue to collect the heavy toll charges even after their investment on building is fully recovered, AND /OR have started charging Toll even before starting the work on the highway or providing any basic facilities. The private builders are charging exorbitant Toll without giving any extra facilities to the road users.

We have often highlighted the anomalies in the present Toll policies that are highly inclined to benefit the concessionaires at the cost of the road users.  The Government has entered into MCAs (Model Concessionaires Agreement) with private builders and offered them 20 years, 30 years time frame to collect the toll. They also talked of taking old roads for toll collection for that they had called bids from Private Toll Collectors. This is sheer commercial business where income is realized just after signing the agreement. The toll charged by the concessionaire is different from what is fixed by the Govt. MCAs have been implemented by the Government to implement projects under PPP scheme. These agreements are unfair as undue concessions are given to the concessionaires which have put a great burden on the road users.

The government is making frequent unilateral changes in the Toll policy with the prime objective making it a revenue generating scheme without providing additional benefits to the road users. The excessive Tolls are making our operation economically nonviable. It is neither transparent nor bearable.

We are not against paying the Toll Taxes as we fully understand its necessity to build quality infrastructure but the current Toll Policy is flawed and excessively biased towards private road builder lobby and rooted in corruption.

The recent news in Times of India dated May 10, 2012 regarding Supreme Court taking cognizance of Toll being charged on unfinished Tolls and flawed Toll policy vindicates our stand on this Issue. This has been the result of raising of Toll issue by AIMTC at various forums and media that there is change of perception among the public and the judiciary.

Toll has indeed become a bane for road transport industry in present times and in our quest for a Transparent Toll Policy we submit that the mode of collection be changed, which will only augment the Government’s revenue and facilitate barrier free movement to the end user and will give respite to the Truckers from day to day hardships at the Toll Plazas across the country.

As per the news report in the Times of India as under “March 19, 2012 | Dipak K Dash , TNN

NEW DELHI: The highways ministry expects approximately Rs 840 crore jump in toll revenue from roads and bridges on national highways (NHs) as more stretches come under the tolling network. The toll revenue is likely to touch Rs 3,627 crore in 2012-13 from Rs 3,554 crore during the current financial year. Almost 95% of this revenue will come from roads owned by the National Highways Authority of India (NHAI), as per the budget estimates presented in Lok Sabha. Sources in the authority said the increase in toll revenue also includes the premium that NHAI has got from awarding of projects in 2011 and 2012.”

(a)    The Toll charges to be collected annually in advance to curb rampant corruption / leakages at the Toll Plazas through-out the country. It will surely bring down corruption levels at the Toll collection booths that are all time high in present scenario.

(b)   We propose a Toll Permit Scheme on the lines of New National Permit Scheme on per annum per vehicle basis, which will allow all National Permit vehicles to move freely across the Toll plazas throughout the country, without stopping to pay Toll.

(c)    We will convince our truckers to pay Rs 30,000/- annually per vehicle in advance for National Permit Vehicles and Rs 10,000/- for State / local vehicles.

(d)   We assure you of the total collection of Rs 10,000 crore annually, i.e., more than the two times of the projected figures of Ministry of Road Transport & Highways.

There are 30 lacs NP trucks running across the country round the clock.

Revenue: 30,00,000 X  30,000 = Rs 9000 cr form National Permit Vehicle

10,00,000  X 10,000 = Rs 1000 cr from State Local Vehicles

The Toll revenue will increase yearly due to increase in the annual vehicle population that is increasing by 22% every year on an average.

(e)    Even if all other road users are allowed Toll free movement on the Highways, still the Govt. will get more revenue than at present. It will help in seamless transportation and result in huge savings of precious diesel and time. It will avoid unnecessary delays / wastage of precious fuel.

Autobei Consulting Group

‘Autobei Consulting Group (ACG) ’ is a management consulting group which has leveraged on its expertise and proprietary databases to provide "Customized Solutions" in areas such ‘Sales Analysis’, ‘Business Planning’, ‘Market assessment’ and ‘Project Feasibility’ on Global Automotive Industry. Autobei Consulting Group (ACG) make use of the expertise and vast experience to deliver Cutting Edge Research Solutions.

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