In a landmark policy development, the Government of India has initiated the first comprehensive review of toll base rates in nearly three decades. The NITI Aayog has been tasked with conducting a detailed study to modernize the framework that determines how toll charges are calculated on national highways.
According to officials from the Ministry of Road Transport and Highways (MoRTH), the move aims to replace the outdated tolling structure that has been in place since 1997 and was last revised in 2008. Currently, toll rates are adjusted annually by around 3 percent to account for inflation, but the underlying base rates have remained unchanged for decades.
The NITI Aayog study will reassess fundamental parameters such as vehicle operating costs, road damage factors, traffic volumes, and user willingness to pay. The goal is to create a more transparent, data-driven, and performance-linked tolling system that reflects present-day road quality, traffic intensity, and economic conditions.
Officials stated that the study will also explore linking toll rates with highway performance and maintenance standards. In addition, it may examine the feasibility of setting up an independent regulatory body to oversee toll rate revisions and ensure fairness for both motorists and concessionaires.
Industry experts note that this review comes at a critical time when India’s national highway network has expanded significantly under the Bharatmala and other infrastructure programs. With growing traffic and rising toll revenues, revisiting the old model is seen as necessary to balance affordability for users and viability for operators.
The new framework could result in revised toll rates across the country, with better-performing highways potentially seeing higher tariffs aligned with improved service quality. Poorly maintained or low-traffic stretches, however, may face reduced charges or stricter justification for tolling.
The NITI Aayog’s recommendations are expected by the end of this financial year. Following the report, MoRTH will initiate consultations with stakeholders before implementing the revised toll structure.
Officials emphasized that the upcoming overhaul marks a significant step toward creating a modern, equitable, and performance-based tolling regime ending the era of static base rates and ushering in a more dynamic model suited to India’s fast-evolving highway ecosystem.
