Union Minister Nitin Gadkari said the Hybrid Annuity Model (HAM) for highway construction should become more adaptable and driven by market forces to ensure project completion on time. The government funds 40 % of the project cost upfront whereas the remaining 60% is covered by the developers.
Gadkari questioned the requirement of the government to constantly fund 40 percent of the project cost whereas some contractors may be interested in investing more than 60 percent. He stressed the need that the contractors should be allowed to lead in infrastructure development. ‘’ What we require is project completion and proposals should be market-driven,’’ the Union Minister of Road and Transport said at an event.
Implementation of GNSS-based electronic toll collection
The National Highways Authority of India (NHAI) has planned to implement GNSS (Global Navigation Satellite System (GNSS)-based electronic toll collection to provide a seamless tolling experience on national highways. Gadkari elaborated that by utilizing the GNSS, India’s total toll revenue could be boosted by at least Rs 10,000 crore. The initiative of implementing this initiative will eliminate the use of physical toll booths. Initially, NHAI is thinking of combining the existing FASTag payment solution with the GNSS-based system. This process will be conducted by using a hybrid model combining RFID (Radio frequency identification) and GNSS-based toll collection.
Gadkari’s proposes exemption of state transport buses from toll tax
The minister has also suggested that the state transport buses should be spared from paying highway tolls. He advocated that the adoption of the GNSS system would increase toll revenue and lessen the system loopholes by 99%. ‘’We need a high standard, transparent and leak proof GNSS based toll collection system to make sure it doesn’t create inconvenience for the toll users,’’ he further elaborated.
Meanwhile, NHAI Chairman Santosh Kumar Yadav also supported the initiative and said that the implementation of the GNSS system will immensely contribute to economic development and will make barrierless tolling a reality for Indians.
A 35% surge was reported in the fiscal year 2023-24 as toll collections in the country reached Rs 64.809.86 crore.
(With PTI inputs)