L&T recently sought compensation of over Rs 1 crore for difficulties in collecting the toll tax.

In a letter to the ministry, the apex transport association has questioned the right of L&T to collect toll tax on the ground that such a tax cannot be levied within the municipal limits of a city. Moreover, it said, "The bridge was only widened and it has been a practice that whenever widening work is undertaken, toll tax is not levied."

The National Highways Authority of India (NHAI) had awarded a contract on build-operate and transfer (BOT) basis for a 27.5 km by-pass road connecting Coimbatore city and bordering Pallakad in Kerala. "On suggestion of L&T, the ministry of surface transport awarded a contract for widening a small bridge of 3-km bridge from Coimbatore cityrailway station and connecting Kerala road," claimed the letter.

The bridge was commissioned and opened to public use on December 13, 1998. AIMTC alleged that the notification dated August 24, 1998 empowering L&T to collect toll tax was issued as an afterthought just a day before the inauguration of the bridge.

The transporters also alleged that the cost of construction at the most could be Rs 2 crore though initially it was estimated to be Rs 1.5 crore and later revised to Rs 3 crore. "In the contract, there is no mention about the estimated cost, etc. Even the right for collecting the tax for bridge has been handwritten subsequently."

Four-wheelers, transport buses and heavy vehicles have to pay Rs 23 every time they use the bridge. Two-wheelers are exempted from the toll.

Making its own calculations, AIMTC pointed out that the contract given to L&T was for 21 years which might enable it to earn Rs 200 crore (approximately) at the current rate and level of traffic.

In a letter to the ministry, L&Tsought compensation of Rs 20 lakh per month totalling to over Rs 1 crore. The ministry referred the issue to the Tamil Nadu government which is also a signatory to the agreement with L&T. There has been wide spread resentment in the area against collection of the toll tax. The local transporters even observed strike on two days.

Toll on Jaipur-Kotputli road unjustified
Toll tax on use of roads or bridges is levied on the ground that the users should pay for the facility. It is believed that they will not mind paying since the money will be recovered by them in the form of shorter route, less travel time, fewer held-ups and fuel saving.

All India Motor Transporters Congress (AIMTC) secretary general JM Saxena has contested the claim. Citing the example of Jaipur-Kotputli section, he pointed out that the toll paid by trucks is more than the saving they make for using the facility.

Giving the break-up of saving, Saxena said the transporters save 30 paise in diesel, 12 paise in wear and tear, and6 paise in travel time per kilometre by using the road. The total saving is of 48 paise per kilometre. But a toll of Rs 1.10 per kilometre is levied on them.

"We do not mind paying even 60 paise as toll but Rs 1.10 is too high. There should be some transparency. Why should the industry subsidise for the government's mismanagement," he said.