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LAW & POLICY RELATING TO TOLL
1. Legal authority of Central Government to charge fee (toll):
ANNEX-II
• Central Government is authorised to levy fee (toll) under section 7 of the
National Highways Act, 1956 for public funded project and under section 8-A of
the said act, for private investment project.
• For public funded projects and BOT projects, the National Highway Fee (
Determination of Rates and Collection) Rules, 2008 further provides (i) details of
base rate per Km for projects involving conversion from 2 lanes to 4 or more
lanes, (ii) schedule of fee for the bridges/ bypass/ tunnel based on the cost
criteria, (iii) rates of fee for two lane national highways with additional investment
of Rs 1.00 crore per km or more on improvement, (iv) methodology for revision
of rates, (v) Mode of collection, (vi) list of exempted vehicles, (vii) discounts to
local & frequent users etc has been elaborated.
2. Nature of Toll
• “Toll” is a fee levied for the services or benefits rendered in relation to the use of
sections of highways, bridges and tunnels.
3. Empowerment under law
Under the law, the Government can levy fee on all sections of national highways
(irrespective of 4 lane or 2 lanes), tunnels, bypass and on bridges with specific cost
criteria.
4. System of pronouncement of rate
By official notification both for public funded and private investment projects.
5. Rate of fee as per new fee rules
(a) The rates of fee shall be uniform for both public funded and private investment
projects.
(b) Fee for use of a section of National Highways of 4(four) or more lanes for the
base year 2007-2008 shall be the product of the length of such section multiplied
by the rates specified hereunder:-
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