Toll revenues will increase to Rs 1 lakh crore per year over the next five years: Gadkari
NEW DELHI: India's toll revenue is likely to increase to Rs 1 lakh crore annually over the next five years thanks to initiatives such as electronic toll collection program, which is being implemented in India to eliminate bottlenecks, minister of the Union Nitin Gadkari He said Monday. The minister said that of the total of 1.4 lakh km highways under NHAI, 24,996 km of highways are currently under the toll range and the length will increase to 27,000 km by the end of the year.
The minister said that as of December 1, 2019, toll payments will be made through FASTag only under the National Electronic Toll Collection (NETC) program, the flagship initiative of the ministry that is being implemented in India to eliminate necks of bottle and guarantee a continuous movement of traffic.
In addition, in line with the prime minister Narendra Modi Due to the stress of the transport system reforms, the GST Council has approved in principle the approval for the integration of the GST EWay Bill system and a pact has also been signed.
Our toll revenues are Rs 30,000 crore per year ... As we build more roads, we will move forward with the goal that in the next five years, toll revenues will increase to Rs 1 lakh crore every year. If we get such income, we can get loans from the banks and raise more money from the markets and invest in more projects, said the Minister of Road and Road Transport, Gadkari.
Speaking to journalists on the sidelines of a conference on One National One Tag - FASTag - Aadhaar for a Vehicle, Gadkari said there was no shortage of resources and that 75 percent of the projects under the National Highway Authority of India ( NHAI) were viable for financing by banks.
The cashless system will not only save time, but also generate huge savings for GDP by reducing delays at toll stations and reducing vehicle fuel.
A FASTag is a device that uses radiofrequency identification (RFID) technology to make toll payments directly from prepaid or savings account connected to it, which is fixed on the windshield of the vehicle and allows the traveler to drive through the toll stations, without stopping to make cash transactions.
He also launched a prepaid NHAI wallet for FASTag.
He said, electronic toll collection will not only minimise time but will also result in higher security as photos of passengers can be taken at toll plazas.
The Minister said that the integration of the GST E-Way Bill system will also result in massive reforms.
According to NHAI, in the existing E-Way Bill system, it has been observed that some carriers are making multiple trips by generating a single E-Way Bill.
Consequently, a memorandum of understanding was signed between Indian Highways Management Committee Ltd and Goods and Services Tax Network.
The Minister said that the integration of the EWB system with FASTag will help the revenue authorities to track the movement of vehicles and will ensure that they travel to the same destination that the carrier or merchant specified when generating the E-Way bill.
In addition, the minister said there are plans to build 2,000 bus ports in India.
Several memorandums of understanding were also signed between state road transport corporations and Indian Highways Management Company Ltd (IHMCL) for bringing toll plazas in the states under the national electronic toll collection program.
The minister said that states willing to join will receive all the technology and help from the Center.