NHAI Introduces New Toll Fee Formula to Lower Highway Costs

New Delhi, India Jul 25, 2026 ALN: The National Highways Authority of India (NHAI) has introduced a new formula for calculating toll fees on national highways that include bridges, tunnels, flyovers, and elevated stretches. This initiative is expected to reduce the toll burden on motorists, making long-distance travel more affordable. The directive was issued on a Friday, with NHAI instructing all its field offices to begin implementing the revised toll notifications and calculations as per the amended regulations.

This move comes in the wake of a significant amendment made by the Ministry of Road Transport and Highways on July 1 to the National Highways Fee (Determination of Rates and Collection) Rules, 2008. These rules govern how user fees are calculated for various stretches of national highways, particularly those that involve complex structures like bridges and tunnels. The previous framework often led to higher tolls, which were tied to the length of these structures, reflecting their increased construction and maintenance costs.

What is the revised rule?

The newly revised rule establishes a more equitable method for calculating tolls. Under this formula, the toll will be determined by taking the lesser of two calculations: either adding ten times the length of the structures (bridges, tunnels, flyovers, or elevated highways) to the length of the remaining highway section or five times the total length of the highway section. Notably, structures that measure 60 meters or less will not be separately accounted for in this calculation.

This change is significant because it places a ceiling on the chargeable distance for toll calculations, thereby ensuring that motorists are not overcharged based on the length of structures present on the highway. Previously, the toll for stretches with extensive bridge or tunnel infrastructure could be calculated at ten times the length of these structures without any upper limit, leading to potentially exorbitant fees for users. The new cap is designed to protect consumers by ensuring that the toll is always based on the lower of the two calculations.

To illustrate how this revised formula will function, the Gazette notification includes practical examples. For instance, consider a 40-kilometer stretch of highway that has 30 kilometers of structures and 10 kilometers of ordinary road. Under the new rule, the toll would be calculated based on a chargeable length of 200 kilometers instead of the previous 310 kilometers, as the new formula mandates that the lower figure must be used. In another example, if a 40-kilometer section includes 10 kilometers of structures and 30 kilometers of ordinary road, the chargeable length would be 130 kilometers instead of 200 kilometers.

Akhilesh Srivastava, a former NHAI official and the current president of the ITS India Forum, emphasized the importance of this change, stating, "Until now, a highway stretch that was mostly bridge or tunnel could see its toll calculated at ten times the structure's length, with no upper limit. A hard cap now ensures the fee is always whichever is lower." This statement underscores the shift towards a more consumer-friendly approach in toll fee calculations.

The implementation of the amended rules will vary depending on the type of toll plaza. For existing publicly funded toll plazas, the new formula will take effect during the next scheduled user fee revision. In contrast, for toll plazas operated by concessionaires, the revised formula will apply once the concession period concludes or when the project is returned to the authority. Newly operational toll plazas will adopt the new formula from the date toll collection begins. This phased implementation allows for a smooth transition to the new toll calculation system.

Highway infrastructure is a critical aspect of India's economic development, facilitating trade and transportation across the country. The introduction of this new toll fee formula is expected to have several implications. Firstly, it aims to ease the financial pressure on motorists, particularly those who frequently use national highways for long-distance travel. This could potentially lead to increased traffic on these highways, as lower tolls may encourage more people to opt for road travel over other forms of transportation.

Moreover, the revised toll structure could also influence the overall cost of goods and services, as transportation costs often play a significant role in pricing. Lower toll fees may lead to reduced logistics costs for businesses, which could be beneficial for consumers in the long run. Additionally, this move aligns with the government's broader objectives of promoting road safety and improving the quality of highway infrastructure, as more affordable tolls may lead to better-maintained roads and enhanced travel experiences for users.

It is also important to consider the implications for the NHAI and concessionaires. While the new formula aims to make tolls more reasonable for users, it may also impact revenue generation for the authority and private operators. The cap on toll calculations could lead to lower revenue from toll collections, which are essential for maintaining and developing highway infrastructure. As such, the NHAI and concessionaires will need to carefully balance the need for affordable tolls with the financial sustainability of highway projects.

In conclusion, the NHAI's introduction of a new toll fee formula represents a significant shift in how tolls are calculated on national highways. By establishing a more equitable method that considers the length of highway structures while placing a ceiling on chargeable distances, the authority aims to reduce the financial burden on motorists. This initiative not only reflects a commitment to improving the user experience on national highways but also highlights the ongoing efforts to enhance the quality of road infrastructure across India. As the revised rules come into effect, stakeholders will be closely monitoring their impact on traffic patterns, revenue generation, and overall highway safety and maintenance.