Toll collected on Gurgaon-Jaipur highway 50% more than cost incurred to build, maintain it

NEW DELHI: The user fee (toll) paid by commuters for using the Gurgaon-Jaipur stretch of NH-48 since April 2009 is nearly 50% more than the cost incurred in construction, maintenance and other ‘prolonged cost incurred’ in the project, as per details provided by the road transport and highways ministry to Lok Sabha on Thursday.
In the case of Delhi-Gurgaon expressway, the toll collected since January 2003 is around 9% more than the cost incurred in construction and maintenance. “Prolongation costs” refer to the additional expenses incurred when a project is extended beyond its original schedule due to delays outside the contractor’s control.
In a written reply to RLP MP Hanuman Beniwal, road transport minister Nitin Gadkari informed that so far little over Rs 9,218 crore has been collected as user fee for the Gurgaon-Jaipur highway stretch while the cost incurred is Rs 6,430 crore. The minister added that against Rs 2,489 crore incurred as cost for Delhi-Gurgaon stretch of the highway, the toll collection is around Rs 2,775 crore.
However, the minister stated, “User fee collected over the period of time from commencement of collection is not discounted and thus not comparable to the construction cost.”

Both the stretches were developed by private players under Build Operate and Transfer (BOT) model for stipulated contract period and they had toll collection rights, but now these are back to the NHAI after the end of the contracts. The NHAI now collects toll through its agencies, which is also increased annually as per the set formula.
Officials have maintained that the revenue from toll collection, which is more than the construction and other costs in some projects, doesn't necessarily mean that the entire investment has been recovered. They said a sizable investment is the form of cost incurred towards land acquisition, which usually remains unrecovered.
They added that while the govt generates revenue in the form of toll from stretches that are financially viable because of high traffic, it also spends a large share of funds in developing roads in regions where traffic flow is less and there is hardly any scope for toll revenue.
Time and again there have been several instances when commuters have demanded abolishing the toll or at least to reduce the user fee after the construction cost in respective highways projects are recovered.