Archive · 24 Nov 2025
Highway Builders Seek Clarity on Annual Toll Pass Impact
Highway builders in India are asking the government for clarity on how a new Annual Pass Scheme for cars and changes in the Wholesale Price Index (WPI) will affect their future projects.
The Annual Pass, introduced in June 2025, allows private cars to cross 200 toll plazas in a year for a fixed fee of Rs 3,000.
Builders are worried that this pass might reduce their expected revenue from tolls.
They want to know if they will be compensated for this and if they can exclude the pass traffic from their financial calculations.
Additionally, there is uncertainty about how the WPI, which determines annual toll increases, will be applied due to a recent court order.
This lack of clarity is making it difficult for builders to plan and bid for new projects.
Highway developers seek clarity from NHAI on the impact of the Annual Pass Scheme and WPI linking factor on upcoming BOT and PPP projects.
The Annual Pass Scheme, introduced in June 2025, allows private cars 200 toll-plaza crossings per year for a fixed fee of Rs 3,000.
Developers are concerned about the potential reduction in toll revenue and seek compensation or exclusion of pass traffic from revenue estimates.
Uncertainty around the WPI linking factor, due to a Delhi High Court order, affects financial modelling for upcoming projects.
Builders suggest offering projects under annuity or HAM formats if the Annual Pass Scheme significantly reduces toll revenues.
- Who
- Highway developers and the National Highways Authority of India (NHAI)
- What
- Clarity sought on the impact of the Annual Pass Scheme and WPI linking factor on upcoming BOT and PPP highway projects
- When
- June 2025 (Annual Pass introduction); current (clarity sought)
- Where
- India
- Why
- To ensure realistic financial modelling and project feasibility
- Annual Pass Fee
- Rs 3,000
- Annual Pass Allowance
- 200 NHAI toll-plaza crossings
- Compensation Status
- Existing BOT, TOT, and InvIT projects compensated; future projects unclear
- WPI Linking Factor
- Uncertain due to Delhi High Court order
- Developers' Request
- Clarification on compensation and exclusion of pass traffic from revenue estimates