<p>New Delhi: By improving operational efficiency and financial management, the National Highways Authority of India (NHAI) has achieved substantial cost savings of Rs 2,062 crore in toll collection operations at public-funded toll plazas during FY 2024–25.<br></p><p>The cost of toll collection has dropped sharply from Rs 4,736 crore in FY 2023–24 to Rs 2,674 crore in FY 2024–25. This marks a decline in collection costs from 17.27 per cent to 9.27 per cent of total toll revenues within a year, the NHAI said in a statement.<br><br>The ‘cost of toll collection’ represents the difference between the toll fee collected by agencies and the amount actually remitted to NHAI.<br><br>"In FY 2023-24, total toll collected by the toll agencies was Rs. 27,417 crores, out of which about Rs. 22,681 crores were remitted to NHAI. However, in FY 2024-25 the toll agencies collected a total of about Rs. 28,823 Crores as Toll Fee, out of which around Rs. 26,149 Crores were remitted to NHAI, the Authority said.<br><br>"The savings in cost of toll collection had resulted primarily due to various initiatives taken by NHAI like close monitoring of current contracts, deletion of provision for deemed extension of 3 months, timely bidding, ensuring the maximum contracts for one-year duration are awarded and Short-term contracts of three months are minimized," the statement added.<br><br>"In addition, measures were taken to drastically reduce short term three-month contracts, limiting only three premature termination requests during a financial year and restricting the same contractor in the bidding of Toll Plaza for which he has submitted the premature termination request," the statement said.<br><br>The NHAI has been regularly engaging with the ‘All India User Fee Collection Federation’ to address issues and challenges faced by the toll collection agencies to build confidence and increase participation in toll bids. Timely release of performance security (cash part) and bank guarantees of the toll collection agencies further enhanced their bidding capabilities resulting in higher bids amounts.<br><br>"To avoid any windfall gains to the toll collection agencies, a ‘windfall gain’ clause was also introduced in the agreements, under which the contract of the toll collection agency can be terminated if the moving average of toll collection in last 15 days is more than 40 percent of the remittance paid to NHAI," the statement said.</p>
<p>New Delhi: By improving operational efficiency and financial management, the National Highways Authority of India (NHAI) has achieved substantial cost savings of Rs 2,062 crore in toll collection operations at public-funded toll plazas during FY 2024–25.<br></p><p>The cost of toll collection has dropped sharply from Rs 4,736 crore in FY 2023–24 to Rs 2,674 crore in FY 2024–25. This marks a decline in collection costs from 17.27 per cent to 9.27 per cent of total toll revenues within a year, the NHAI said in a statement.<br><br>The ‘cost of toll collection’ represents the difference between the toll fee collected by agencies and the amount actually remitted to NHAI.<br><br>"In FY 2023-24, total toll collected by the toll agencies was Rs. 27,417 crores, out of which about Rs. 22,681 crores were remitted to NHAI. However, in FY 2024-25 the toll agencies collected a total of about Rs. 28,823 Crores as Toll Fee, out of which around Rs. 26,149 Crores were remitted to NHAI, the Authority said.<br><br>"The savings in cost of toll collection had resulted primarily due to various initiatives taken by NHAI like close monitoring of current contracts, deletion of provision for deemed extension of 3 months, timely bidding, ensuring the maximum contracts for one-year duration are awarded and Short-term contracts of three months are minimized," the statement added.<br><br>"In addition, measures were taken to drastically reduce short term three-month contracts, limiting only three premature termination requests during a financial year and restricting the same contractor in the bidding of Toll Plaza for which he has submitted the premature termination request," the statement said.<br><br>The NHAI has been regularly engaging with the ‘All India User Fee Collection Federation’ to address issues and challenges faced by the toll collection agencies to build confidence and increase participation in toll bids. Timely release of performance security (cash part) and bank guarantees of the toll collection agencies further enhanced their bidding capabilities resulting in higher bids amounts.<br><br>"To avoid any windfall gains to the toll collection agencies, a ‘windfall gain’ clause was also introduced in the agreements, under which the contract of the toll collection agency can be terminated if the moving average of toll collection in last 15 days is more than 40 percent of the remittance paid to NHAI," the statement said.</p>
