The National Highways Authority of India (NHAI) has reported a significant reduction of ₹2,062 crore in toll collection costs for the financial year 2024-25, showcasing enhanced efficiency and transparency in its operations. Official figures reveal that the cost of toll collection at public-funded plazas dropped from ₹4,736 crore in FY 2023-24 to ₹2,674 crore in FY 2024-25, marking a decline of nearly 44%. This reduction also reflects in the cost as a percentage of total toll revenue, which fell from 17.27% to 9.27%.

In FY 2023-24, toll agencies collected ₹27,417 crore, with ₹22,681 crore remitted to NHAI. The following year saw total toll collections rise to ₹28,823 crore, with remittances increasing to ₹26,149 crore. NHAI attributes these savings to a series of operational reforms and improved contract management practices.

Key measures included closer monitoring of contracts, eliminating the provision for a deemed three-month extension, and ensuring that most contracts are awarded for one-year durations instead of short-term three-month contracts. Additionally, NHAI limited the number of premature termination requests to three per financial year and restricted contractors who requested early termination from rebidding for the same plaza.

NHAI has also engaged with the All India User Fee Collection Federation to address challenges faced by toll collection agencies, fostering greater confidence and participation in toll bids. The timely release of performance securities and bank guarantees has further enhanced the financial capabilities of these agencies, leading to more competitive bids.

To prevent excessive profits, NHAI introduced a Windfall Gain Clause in tolling agreements. This clause allows for contract termination if the 15-day moving average of toll collections exceeds 40% of the remittance paid to NHAI. These comprehensive measures have significantly improved the efficiency of tolling operations and strengthened NHAI’s financial performance.