Highway builders seek clarity on annual toll pass impact before new BOT bids

Highway developers have asked the National Highways Authority of India (NHAI) to clarify how the government’s new Annual Pass Scheme for private cars and the uncertainty around the Wholesale Price Index (WPI) linking factor will be treated in upcoming BOT (Toll) and PPP highway projects, sources told Business Today.

The industry’s main worry is the Annual Pass, introduced in June 2025 at a fixed fee of Rs 3,000, allowing private cars up to 200 NHAI toll-plaza crossings in a year. While NHAI has already announced compensation for existing BOT, TOT and InvIT projects affected by the pass, no guidelines have been issued for future projects. 

Developers say this creates a major gap because car traffic forms a significant share of toll-paying vehicles on many corridors, and a capped pass may sharply reduce the revenue they can expect on new projects.

According to sources, builders want NHAI to state clearly whether the compensation mechanism will be extended to upcoming projects. If not, they are seeking permission to exclude annual-pass car traffic from bid revenue estimates so that project financials remain realistic. For corridors where the scheme makes toll revenues too low, developers say such projects should be offered under annuity or HAM formats instead of BOT.

Alongside this, the industry is also concerned about the WPI linking factor, which determines annual toll hikes. A recent Delhi High Court order has put NHAI’s revised WPI formula on hold, creating uncertainty over how toll indexation will apply to upcoming bids. Developers say this ambiguity affects financial modelling and could lead to cautious or lower participation in the next cycle of PPP bids.