Archive · 25 Sep 2025
Highways: Developers May Toll Older Roads to Boost Investment
Imagine building a new highway.
Some drivers might take a cheaper, older road nearby instead, meaning less money for the new highway.
To fix this, the government might let the company building the new highway also manage and charge tolls on the older road.
This makes it more likely that the company will get the money they expect, which encourages them to invest in building new highways.
It's like giving them a package deal, so they can make sure they get enough money back.
The government is hoping this will encourage more companies to build highways in the future.
Highway developers could operate older, parallel roads.
This is to reduce toll leakage and attract investment.
The goal is to bundle old and new roads under a single contract.
The system aims to reduce risk for developers in BOT projects.
NHAI has identified 53 projects worth ₹2.1 trillion for BOT.
- Who
- The Union road ministry and NHAI.
- What
- Allowing highway developers to toll older, parallel roads.
- When
- The new system is being considered now.
- Where
- India.
- Why
- Reduce risk and increase investment.
- Policy Change
- Highway developers may operate and toll older parallel roads.
- Goal
- Reduce toll leakage, attract investors.
- Implementation
- Bundling new and old roads for maintenance and tolling.
- Model
- Build-operate-transfer (BOT) is preferred.
- Current Projects
- 53 projects worth ₹2.1 trillion are to be developed via BOT.