Introduction

Currently, India has the second-largest road network in the world, with a total length of over 6.6 million kilometers. Out of this, the national highway network comprises about 2% (approximately 135,000 km) of the total road length, but it carries over 40% of the country's total road traffic.

One of the major initiatives launched by the government was the Bharatmala Pariyojana1, which aims to develop 34,800 km of highways at a cost of Rs. 5.35 lakh crore. The project is to provide seamless connectivity to major ports, economic corridors, border areas, and backward regions. The project has been divided into seven phases, and work has already begun on several stretches of the highway.

India has become the flag bearer in adopting digital technology. The adoption of technology in the Highway Network of India is also taking place in full swing. Fast tag is a mega success in India, and the government seems to be keen on adopting newer technology to completely remove the toll plazas from the National Highway Infrastructure and reduce the overhead costs incurred in keeping the toll plazas operational.

The Government has announced that India is aiming to remove all Toll Plazas from National Highways and move towards GPS based tolling system.2 This goal is as challenging as it is ambitious. There would be a lot of technological and logistical challenges for the implementation of this scheme. This paper seeks to analyze the legal aspects of the implementation of such a system.

Open and Closed Tolling Systems

Open and closed tolling systems are two methods used to collect toll fees on highways, bridges, and tunnels.

In an open tolling system, toll fees are collected at a designated toll plaza, usually located at the entry or exit point of a highway or bridge. Vehicles must stop at the toll plaza and pay the fee in cash or through an electronic payment system for use of the National Highway. Open tolling systems are widely used in many countries, including the United States and in India. In a closed tolling system, toll fees are collected automatically through electronic means, and there is no need for drivers to stop at a toll plaza.

This is done through the use of a transponder or a license plate reader, which automatically deducts the toll fee from the driver's account or sends a bill to the registered owner of the vehicle. Closed tolling systems are commonly used on expressways and bridges, particularly in Europe and Asia.

The main advantage of a closed tolling system is that it reduces traffic congestion and travel time as vehicles don't have to stop and wait in long lines to pay the toll fee. This can also lead to a reduction in vehicle emissions and fuel consumption. Closed tolling systems also make toll collection more efficient and secure, since there is no need to handle cash or process transactions manually.

Problems with the Current Tolling System

India currently follows an open tolling system for the majority of its National Highways. A major problem with the existing system is that vehicles can use a large tollable length of a Highway and evade paying the toll charges by bypassing the toll plazas. Such evasion leads to loss of revenue to the Contractor resulting in deterioration in the financial viability of the Highway Projects. Vehicles use the alternative routes to enter and exit the Highway without paying any toll charges.

Presently the location of the toll plaza is governed by the National Highway Fee Determination Rules of 2008. Rule 83 of the said rules talks about the location of Toll Plaza. The same is reproduced herein below –

"Location of toll plaza- (I) The executing authority or the concessionaire, as the case may be, shall establish a toll plaza beyond a distance of ten kms from a municipal or local town area limits:

Provided that the executing authority may, for reasons to be recorded in writing, locate or allow the concessionaire to locate a toll plaza within a distance of ten kms of such municipal or local town area limits, but in no case within five kms of such municipal or local town area limits:

Provided further that where a section of the national highway, permanent bridge, bypass or tunnel, as the case may be, is constructed within the municipal or town area limits or within five kms from such limits, primarily for use of the residents of such municipal or town area, the toll plaza may be established within the municipal or town area limits or within a distance of five kms from such limits.

(2) Any other toll plaza on the same section of national highway and in the same direction shall not be established within a distance of sixty kms: Provided that where the executing authority deems necessary, it may for reasons to be recorded in writing, establish or allow the concessionaire to establish another toll plaza within a distance of sixty kms:

Provided further that a toll plaza may be established within a distance of sixty kms from another toll plaza if such toll plaza is for collection of fee for a permanent bridge, bypass or tunnel."

Location of Toll plazas has also been a constant bone of contention between the general public, the Concessionaires and the National Highway Authority of India.

Case Laws

There have been times when the NHAI was dragged into the court under writs and PIL's for the location of the toll plaza and times when NHAI was in itself in dispute with a Concessionaire regarding the location of Toll Plaza. The present system was troublesome for both sides in a way. Provided below are some of the cases wherein the Courts were approached with disputes regarding the location of Toll Plaza –

M/S National Highways Authority Of India V. M/S Pondicherry Tindivanam Tollway Ltd.4 – A division bench of the Hon'ble Delhi High Court upheld the decision of construction of an additional toll plaza within the distance of 60km of the existing toll plaza to curb the evasion of toll fee and loss of revenue to the Concessionaire.

NHAI did not permit the Concessionaire for the construction of Additional Toll Plaza and for this reason, the Concessionaire was unable to curb the evasion of Toll Fees and was suffering heavy losses.

In Malek Zahidkhan Mohammedkhan v. National Highway Authority of India5 On being dragged to Court for the Location of Toll Plaza being less than 60 km from another toll plaza, NHAI filed an affidavit before the Gujrat High Court that the Limit of 60 km as provided in the National Highway Fee Determination Rules of 2008 is for Tollable Distance between two toll plazas and not the actual distance.

Ilangoo v. The Union of India6 – The court has reiterated that NHAI can build an additional toll plaza under rule 8 by recording the reasons in writing.

The court has clarified that even though the plaza in the present case was illegal, it has the liberty to build an additional toll plaza by recording reasons in writing but must revise the fees accordingly.

Conclusion

India has been facing numerous issues with its existing tolling system on National Highways, which requires vehicles to pay a fee at designated toll plazas. These toll plazas often lead to congestion, long wait times, and increased fuel consumption. Additionally, the financial viability of the Highway project is greatly reduced due to evasion of fees by vehicles and subsequent loss of revenue to the Toll Operator/Concessionaire.

If India successfully adopts and transitions to a GPS-based closed tolling system, the toll plazas on National Highways as we know them today would become a thing of the past. Instead of physically stopping at a toll plaza to pay a fee, vehicles would be charged a toll automatically based on their location and usage of the National Highway. The GPS-based system would allow authorities to accurately track and charge vehicles, reducing the risk of evasion and the loss of revenue to the Concessionaires/Contractors.

By eliminating toll plazas, there would no longer be any disputes regarding their location or construction of toll plazas to curb the loss of revenue to toll operators due to leakage/Diversion of traffic. This would make the rules and laws governing the location of toll plazas redundant. Furthermore, the GPS-based system would allow authorities to easily detect and address fee evasion, thereby reducing the need for toll plaza inspections and resulting in more efficient toll collection.

One of the key benefits of the GPS-based closed tolling system is its potential to reduce traffic congestion and wait-time. Without the need to stop at a toll plaza, vehicles could travel more smoothly and quickly along the National Highway. This would surely lead to an increase in fuel efficiency and a reduction in carbon emissions, which would be beneficial for both the environment and the economy.

Moreover, the implementation of a GPS-based closed tolling system would be a significant technological advancement for India's transportation sector. It would require the installation of advanced GPS and payment processing technologies, which would create jobs and boost the country's technological capabilities. Additionally, the system would help to streamline toll collection and reduce administrative costs associated with toll plaza maintenance and management.

In conclusion, the implementation of a GPSbased closed tolling system would have significant benefits for India's National Highways.

It would eliminate the need for physical toll plazas, reduce disputes related to toll plaza location and construction, reduction in the overhead costs, improve traffic flow, reduce fuel consumption and carbon emissions, create jobs, and advance India's technological capabilities. While the transition to a new tolling system may require significant investment and effort, the long-term benefits for India's transportation sector make it a worthwhile endeavour.

Footnotes

1 https://www.india.gov.in/spotlight/bharatmalapariyojana-stepping-stone-towards-new-india

2 https://economictimes.indiatimes.com/news/eco nomy/policy/govt-to-introduce-gps-based-tollsystem-in-six-months-to-replace-tollplazas/articleshow/98966181.cms?from=md

3 National Highway (Fee Determination) Rules 2008.

4 MANU/DE/5680/2019

5 2019 SCC OnLine Guj 4598

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