Driving In Madhya Pradesh To Get Costlier As More Roads Come Under Toll, PWD Eyes ₹3,000 Crore Revenue

Bhopal (Madhya Pradesh): Driving in Madhya Pradesh could become costlier as the government plans to bring more roads under the toll network, with at least 12 additional roads already proposed for toll collection and more in the pipeline.

There are at least 139 toll plazas on 93 roads under different schemes of the Madhya Pradesh Road Development Corporation (MPRDC), which is an offshoot of the Public Works Department (PWD).

As the toll network expands, vehicle owners will have to shell out more to use these roads. Sources in PWD said that toll collection of NHAI in the state stands at around Rs 4,000 crore per annum.

On the contrary, PWD toll collection is just Rs 400 crore. Seeing the vast gap, the department is mulling increasing the toll collection target to Rs 2,000 crore to Rs 3,000 crore per annum in the next 10-15 years.

To achieve this target, more roads would have to be constructed under the toll model. Principal Secretary (PWD) Sukhveer Singh said revenue from additional toll-based roads would help the department earn more and ultimately increase its contribution to state revenue.

PWD pushing HAM model instead of BOT

When roads are constructed under the Build Operate Transfer (BOT) model, toll revenue goes to the construction company.

PWD is now considering promoting the Hybrid Annuity Model (HAM), which will bring more revenue into its coffers.

Under HAM, PWD contributes 40% of the total project cost during the construction phase through milestone-linked instalments, while the private developer finances the remaining 60%.

Toll collection under the HAM model will be handled by PWD. The department, therefore, wants more upcoming road projects to be taken up under HAM.

More roads sanctioned under HAM

Sunil Verma, an officer of MPRDC handling toll tax-based road works, told Free Press that recently a few roads have been sanctioned under HAM, including Seoni-Balaghat, Vidisha-Bhopal and Damoh-Katni. More roads are in the pipeline under HAM, which have the toll plaza concept.

Details of toll plazas under MPRDC

Scheme

Number of roads

Toll Plazas

BOT (Toll)

16

27

BOT (T+A)

28

35

OMT

7

7

User Fee

42

70

Total

93

139

BOT (T+A): Build-Operate-Transfer (Toll + Annuity).

OMT: Operate, Maintain and Transfer.