The Old Way of Calculating Tolls
Until now, the method for calculating tolls on National Highways could often feel punitive, especially on stretches with major infrastructure. To account for the higher cost of building and maintaining structures like bridges, tunnels, and elevated corridors,
the tollable distance for these sections was often inflated. The fee was generally linked to ten times the actual length of the structure. This meant that even if a bridge was only 1 kilometre long, you could be charged a toll equivalent to travelling 10 kilometres. This system was intended to help recover the high construction costs but often resulted in significantly higher charges for commuters, with no upper limit on the chargeable distance.
What is the New 'Cheaper' Formula?
The Ministry of Road Transport and Highways has amended the National Highways Fee Rules, introducing a more balanced approach. Under the new system, the National Highways Authority of India (NHAI) will use two methods to calculate the chargeable distance and must apply whichever one results in a lower amount. The first method is the old one: 10 times the length of the structure plus the length of the normal road. The second method is new: 5 times the total length of the entire highway section, including both the structure and the road. By enforcing a cap and making authorities choose the cheaper of the two outcomes, the new rule ensures a fairer deal for drivers.
How This Makes Your Journey Cheaper
The benefits of this new formula are best seen with an example provided in the official gazette notification. Imagine a 40-km highway section that includes 10 km of bridges or tunnels and 30 km of ordinary road. Under the old system, the chargeable length could have been up to 130 km (10 km of structures x 10 + 30 km of road). Under the new rule, authorities must compare that 130 km with a second calculation: 5 times the total section length (5 x 40 km = 200 km). Since 130 km is lower, that will be the chargeable distance. The savings become even more dramatic on routes dominated by structures. For a 40-km section with 30 km of structures, the old calculation would be a staggering 310 km. The new rule caps the chargeable distance at 200 km (5 x 40 km), as it is the lower of the two options. This could lead to toll reductions of up to 40% in some cases.
Which Highways Are Affected and When?
This change won't apply to every highway across the country overnight. The new formula is specifically for highway stretches that contain one or more independent bridges, tunnels, flyovers, or elevated roads longer than 60 metres. The rollout will be gradual. For existing toll plazas funded by the government, the new calculation will take effect from their next scheduled fee revision date. For highways operated by private companies under a concession agreement, the changes will apply after the concession period ends and the project is transferred back to the NHAI. All newly constructed toll plazas will adopt this formula from their first day of operation.
The Bigger Picture: A Shift to Smarter Tolling
This formula revision is part of a broader shift towards a more modern and transparent tolling regime in India. While this rule addresses calculation fairness, the government is also testing technology to eliminate toll plazas altogether. Pilot projects for Global Navigation Satellite System (GNSS) based tolling are already underway. This future system aims to track a vehicle's exact entry and exit points on a highway via satellite and deduct the toll automatically based on the precise distance travelled. This would end the practice of paying for a fixed 60-km section even if you only use a small part of it. Though a nationwide GNSS rollout is still being evaluated, the move towards fairer, user-based charging has clearly begun.
