Government to get 60% lower toll than developer in long run.
While the National Highways Authority of India (NHAI) officials are trying to calculate their revenue loss on account of the toll cuts announced by the transport minister Kamal Nath on Saturday, industry representatives believe the government may lose about Rs300-400 crore annually.
Brokering a deal with the transporters threatening to go on a nationwide indefinite strike challenging the December 2008 toll rules, Nath announced introduction of a new category for three-axle commercial vehicle lowering its toll slab to Rs2.40 per km.
Prior to this, three-axle commercial vehicles were part of the heavy construction vehicle/multi axle vehicle slab of the 2008 rule charged at Rs3.45 per km. This essentially means loss of Rs1.05 per km per truck in the country.
However, NHAI officials say they do not have the reliable data to go by.
“We have to get actual estimation. We are trying to figure out what is the component of the three-axle trucks in the traffic figure,” said an NHAI official.
Going by the Indian Foundation for Transport Research and Training (IFTRT), the three-axle commercial vehicles form 55-60% of the multi-axle vehicle traffic on the trunk route.
“Since this vehicle population accounts for around Rs1,000 crore toll collection annually, slashing Rs1.05 or about 30% will lead to revenue loss of around Rs300 crore for the government,” said S P Singh, senior fellow, IFTRT.
Across vehicle category, the annual toll mop-up stands at around Rs2,500 crore.
Singh, however, said the move was disastrous for the government.
“The road use of this class of vehicle is more, but you are paying less toll. Secondly, will they tell how much will they pass on to the consumers? Also, how does toll, which forms only 5% of the operational cost of the truckers, become such an important issue?
The annual gross freight volume of the industry is around Rs3,50,000 crore. Against this, Rs300 crore is too small an amount to create a ruckus,” Singh added.
Meanwhile, the government’s revenue loss will be more in the long run on account of the 60% cut in toll across vehicle categories, post completion of the concession period of the developer. This also forms part of the compromise with the transporters. This essentially means that the government will get 60% lower toll than the developer.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
)
)
)
)
)
)
)
)
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}