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The National Highways Authority of India (NHAI) reported savings of about INR 2,062 crore in toll-collection expenses during the last financial year. The cost of collection dropped from 17.27% to 9.27%, supported by reforms in contract management and improved monitoring. Total toll receipts rose to INR 28,823 crore, while remittances to NHAI increased to INR 26,149 crore. The authority credited this progress to tighter contract durations, transparent bidding processes, and the introduction of a "Windfall Gain" clause designed to ensure fair revenue sharing with toll agencies.
The National Highways Authority of India (NHAI) achieved significant savings in toll-collection operations during the recent financial year, reducing overall costs by about INR 2,062 crore. Toll-collection expenses declined from INR 4,736 crore in the previous year to INR 2,674 crore, bringing down the cost-to-collection ratio from 17.27% to 9.27%. Advertisement
As per official data, toll agencies collected around INR 28,823 crore during the year, compared with INR 27,417 crore in the previous period. The amount remitted to NHAI also rose notably-from INR 22,681 crore to INR 26,149 crore. This improvement reflects the authority's efforts to streamline toll-collection contracts and strengthen financial monitoring across its network.
The NHAI attributed the reduction in cost to several measures, including closer supervision of contracts and the removal of the automatic three-month extension that was previously allowed to contractors. It also emphasized that most toll-collection contracts are now restricted to one-year terms, minimizing prolonged renewals that had earlier led to inflated costs. The number of short-term, three-month contracts has been reduced considerably to maintain consistency and accountability.
Additionally, the authority highlighted that the timely release of the cash portion of performance securities and bank guarantees has improved the liquidity of toll-collecting agencies, allowing them to bid competitively and submit higher remittance offers. The introduction of a new "Windfall Gain" clause is another key change. Under this rule, if the 15-day moving average of toll collections exceeds 40% of the remittance amount, NHAI may terminate the contract, preventing excessive profits by operators and ensuring that revenue remains fairly distributed.
Officials stated that these steps are part of NHAI's wider effort to enhance operational efficiency and reduce financial leakages in toll management. Over the years, the authority had faced challenges related to higher collection costs and lengthy contract structures that discouraged competitive bidding. The latest results suggest that stricter monitoring and contract reforms are helping NHAI achieve better cost efficiency and improved remittance performance.
The reforms also align with the government's broader focus on digital tolling, transparency, and the use of electronic systems such as FASTag to reduce cash handling and improve revenue accuracy. NHAI plans to continue evaluating contract structures and strengthen oversight to maintain these financial gains in the coming years.
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