Gadkari Advocates Market-Driven Highway Construction and GNSS-Based Toll Collection

Union Minister Nitin Gadkari has proposed a more flexible and market-driven approach to highway construction under the Hybrid Annuity Model (HAM). He also highlighted the potential benefits of implementing a GNSS-based electronic toll collection system, which could significantly boost toll revenue and streamline tolling operations in India.

In a significant policy update, Union Minister Nitin Gadkari has recommended greater flexibility and market-driven strategies for highway construction under the Hybrid Annuity Model (HAM). Currently, the government finances 40% of such projects with developers covering the remaining costs. Gadkari emphasized that infrastructure projects should primarily be developer-led.

Gadkari also spoke about the immense benefits awaiting the Indian toll collection system through the adoption of the Global Navigation Satellite System (GNSS)-based electronic toll collection. With toll revenue in India seeing a 35% increase in 2023-24, the new system could add an additional Rs 10,000 crore by eliminating inefficiencies and offering a seamless tolling experience.

State-owned NHAI has already initiated steps towards this by inviting global expressions of interest for GNSS-based tolling. The plan includes integrating this new system with the existing FASTag ecosystem to significantly enhance passenger and freight transport across the nation's highways.