What Exactly Is Changing?
The Ministry of Road Transport and Highways has amended the National Highways Fee Rules of 2008, altering how the 'tollable distance' is calculated on specific highway stretches. The change focuses on routes that include costly infrastructure like bridges,
tunnels, flyovers, and elevated corridors. Previously, the toll for these sections was often calculated in a way that heavily weighted the length of these structures to account for their high construction and maintenance costs. The new system introduces a cap, ensuring that the final tollable distance is always the lower of two possible calculations, which is expected to result in fairer pricing for motorists.
The Old System vs. The New Formula
Under the old system, the tollable length of a highway section with a major structure was generally calculated by treating the structure's length as ten times its actual size. This could lead to very high tollable distances with no upper limit. The new rule, implemented in July 2026, introduces a choice between two calculations, with the authorities mandated to use whichever is lower. The two options are: 1. Ten times the length of the structure (bridge, tunnel, etc.) plus the length of the remaining normal road. 2. Five times the total length of the entire highway section, including both the structure and the road. By enforcing the lower of these two figures, the new formula places a hard cap on how much a bridge or tunnel can inflate the tollable distance, preventing disproportionately high charges.
An Example of the Impact
To understand the real-world effect, consider a 40-kilometre highway section that consists of 30 km of elevated structures and 10 km of regular road. Under the previous approach, the tollable distance would have been a staggering 310 km (30 km x 10 + 10 km). With the new formula, authorities must compare that 310 km figure with the second option: five times the total length of the highway section, which is 200 km (40 km x 5). Since 200 km is the lower value, the toll will now be calculated based on this much shorter distance, leading to a significant reduction in the fee. The new rules also specify that structures measuring 60 metres or less will not be treated separately for toll calculations, preventing minor infrastructure from unnecessarily increasing charges.
Who Benefits and When Does It Apply?
The primary beneficiaries of this change are motorists who frequently travel on national highways that feature long bridges, tunnels, or elevated corridors. It stands to lower travel expenses for private vehicle owners and reduce operating costs for commercial transport and logistics companies on eligible routes. However, it's important to note that this revised formula does not apply to every national highway. It is specifically for those stretches with the types of major structures covered under the amended rules. For existing publicly funded toll plazas, the new rules will take effect from their next scheduled fee revision. For plazas operated by private concessionaires, the change will apply after the concession period ends or the project is transferred back to the government. All newly operational toll plazas will use the formula from day one.
Part of a Broader Shift in Tolling
This formula change is part of a wider government initiative to modernise India's highway tolling system. The long-term plan involves moving towards a barrier-free, distance-based tolling model using number plate recognition technology. Union Minister Nitin Gadkari has stated the goal is to eliminate physical toll plazas by the end of 2026, allowing for seamless travel at highway speeds. While that larger transition is still in progress, this specific rule amendment offers a more immediate adjustment aimed at fairness. By ensuring that tolls on expensive infrastructure sections are more reasonably capped, the government aims to make highway travel more affordable and uniform across the country.
