NHAI slashes toll collection costs by ₹2,062 crore in FY25
NHAI also minimised short-term contracts, restricted contractors from repeatedly seeking premature terminations, and limited such requests to three per financial year.
- Oct 30, 2025,
- Updated Oct 30, 2025 5:14 PM IST
In a significant efficiency push, the National Highways Authority of India (NHAI) has slashed the cost of toll collection at public-funded toll plazas by ₹2,062 crore in FY 2024–25. The cost dropped from ₹4,736 crore in FY 2023–24 to ₹2,674 crore in FY 2024–25, marking a sharp decline of over 56 percent.
In percentage terms, the cost of toll collection fell from 17.27 percent in FY24 to 9.27 percent in FY25, according to data shared by the Ministry of Road Transport and Highways. The “cost of toll collection” refers to the difference between the toll fees collected by private agencies and the remittances made to NHAI.
During FY25, toll agencies collected ₹28,823 crore, of which ₹26,149 crore was remitted to NHAI. In comparison, FY24 saw toll collections of ₹27,417 crore, with ₹22,681 crore remitted.
Officials attributed the savings to a series of administrative and contractual reforms aimed at improving efficiency and transparency in toll operations. These included close monitoring of contracts, deletion of the earlier three-month “deemed extension” clause, timely bidding, and ensuring that most contracts were awarded for a one-year duration instead of short three-month terms.
NHAI also minimised short-term contracts, restricted contractors from repeatedly seeking premature terminations, and limited such requests to three per financial year. To boost confidence among toll operators, NHAI has been in regular dialogue with the All India User Fee Collection Federation, addressing operational challenges and ensuring timely release of performance securities and bank guarantees, which in turn encouraged more competitive bidding.
To prevent excessive profits, a “windfall gain” clause was introduced, allowing NHAI to terminate a contract if the moving average of toll collection over 15 days exceeds 40 percent of the amount remitted to the authority.
In a significant efficiency push, the National Highways Authority of India (NHAI) has slashed the cost of toll collection at public-funded toll plazas by ₹2,062 crore in FY 2024–25. The cost dropped from ₹4,736 crore in FY 2023–24 to ₹2,674 crore in FY 2024–25, marking a sharp decline of over 56 percent.
In percentage terms, the cost of toll collection fell from 17.27 percent in FY24 to 9.27 percent in FY25, according to data shared by the Ministry of Road Transport and Highways. The “cost of toll collection” refers to the difference between the toll fees collected by private agencies and the remittances made to NHAI.
During FY25, toll agencies collected ₹28,823 crore, of which ₹26,149 crore was remitted to NHAI. In comparison, FY24 saw toll collections of ₹27,417 crore, with ₹22,681 crore remitted.
Officials attributed the savings to a series of administrative and contractual reforms aimed at improving efficiency and transparency in toll operations. These included close monitoring of contracts, deletion of the earlier three-month “deemed extension” clause, timely bidding, and ensuring that most contracts were awarded for a one-year duration instead of short three-month terms.
NHAI also minimised short-term contracts, restricted contractors from repeatedly seeking premature terminations, and limited such requests to three per financial year. To boost confidence among toll operators, NHAI has been in regular dialogue with the All India User Fee Collection Federation, addressing operational challenges and ensuring timely release of performance securities and bank guarantees, which in turn encouraged more competitive bidding.
To prevent excessive profits, a “windfall gain” clause was introduced, allowing NHAI to terminate a contract if the moving average of toll collection over 15 days exceeds 40 percent of the amount remitted to the authority.