The Old '10x' Formula
Previously, the system for calculating tolls on highways with complex structures like tunnels, bridges, and flyovers was straightforward but often expensive for commuters. Under the National Highways Fee Rules of 2008, the presence of these structures significantly
increased the toll. The logic was to compensate for their much higher construction and maintenance costs. Essentially, the length of a tunnel or bridge was often treated as ten times its actual distance for toll calculation purposes. This meant a 2-kilometre tunnel could be charged as if it were a 20-kilometre stretch of road. For highways dominated by such structures, this '10x' multiplier could lead to very high toll charges, as there was no upper limit on the final chargeable distance.
What's New in the Rulebook?
The Ministry of Road Transport and Highways has amended the rules, introducing a new, more nuanced formula that effectively puts a cap on how high tolls can go. As of a July 1 amendment, the National Highways Authority of India (NHAI) will now calculate the tollable length using two different methods and must apply whichever one results in a lower figure. The two options are: 1) The old method of taking 10 times the length of the structures (tunnels, bridges, etc.) plus the length of the normal road section, or 2) A new ceiling, which is five times the total length of the entire highway section. By being mandated to choose the lower of the two, the new rule prevents the unlimited escalation of tolls on structure-heavy corridors. The change, however, only applies to structures longer than 60 metres.
Why the Government Made the Change
The primary goal behind this policy shift is to rationalize tolling and make it fairer for highway users. While acknowledging the high cost of building and maintaining tunnels and elevated roads, the government aims to strike a better balance between cost recovery and affordability. The previous formula could lead to disproportionately expensive tolls on certain routes, potentially discouraging their use. The new capped formula ensures that while infrastructure costs are still accounted for, the final price paid by the commuter remains reasonable. This move is expected to lower transportation costs, especially for commercial vehicles, and bring more uniformity and transparency to how tolls are set across the country.
How It Affects Your Travel Costs
For motorists, this change could mean noticeable savings on certain routes. The impact will be most significant on highways that feature a high proportion of tunnels, long bridges, or elevated sections. To illustrate, consider a 40-km highway that consists entirely of tunnels and bridges. Under the old system, its tollable length could have been calculated as 400 km (40 km x 10). Under the new rule, the authorities must compare that to five times the total length, which is 200 km (40 km x 5). Since 200 km is lower, the toll will now be based on this shorter distance, effectively halving the cost in this specific scenario. The NHAI has already directed its field offices to begin processing toll revisions based on these new rules for existing plazas at their next scheduled update.
Part of a Broader Tolling Overhaul
This rule change is part of a wider government vision to modernize India's entire tolling ecosystem. Union Minister Nitin Gadkari has announced plans to eliminate all physical toll plazas from national highways by the end of 2026. They are set to be replaced with a fully automated, barrier-free system based on technologies like the Global Navigation Satellite System (GNSS) and Automatic Number Plate Recognition (ANPR). This future system will charge vehicles based on the exact distance they travel on a highway, a model known as Multi-Lane Free Flow (MLFF). The goal is to reduce congestion, save fuel wasted at toll booths, and create a seamless travel experience, allowing vehicles to move at highway speeds without stopping.
