Madhya Pradesh To Increase Toll Roads, Eyes ₹3,000 Crore Revenue

The Madhya Pradesh government plans to expand its toll network by bringing more roads under toll collection, which could make driving in the state costlier. Currently, there are 139 toll plazas on 93 roads under different schemes of the Madhya Pradesh Road Development Corporation (MPRDC).

The Public Works Department (PWD) aims to increase its toll collection target to ₹2,000 crore to ₹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 stated that revenue from additional toll-based roads would help the department earn more and ultimately increase its contribution to state revenue. The PWD is considering promoting the Hybrid Annuity Model (HAM) instead of the Build Operate Transfer (BOT) model for upcoming road projects.

Under the HAM model, the PWD contributes 40% of the total project cost during the construction phase, while the private developer finances the remaining 60%. Toll collection under the HAM model will be handled by the PWD, allowing the department to retain more revenue.

Several roads have been sanctioned under the HAM model, including Seoni-Balaghat, Vidisha-Bhopal, and Damoh-Katni. More roads are in the pipeline under the HAM model, which includes the toll plaza concept.

The MPRDC currently has 93 roads under different schemes, with 139 toll plazas. The toll collection of the National Highways Authority of India (NHAI) in the state stands at around ₹4,000 crore per annum, while the PWD's toll collection is ₹400 crore.

The expansion of the toll network is expected to generate more revenue for the state government. The PWD's decision to promote the HAM model is likely to increase its revenue and contribution to the state's coffers.

The move to increase toll roads in Madhya Pradesh is part of the government's efforts to generate more revenue and improve the state's infrastructure. The decision is likely to have a significant impact on vehicle owners in the state, who will have to pay more to use the tolled roads.

In the long run, the increased revenue from toll collection could help the state government to invest in other infrastructure projects and improve the overall quality of life for its citizens.

The Madhya Pradesh government's decision to expand its toll network is a significant development that could have far-reaching implications for the state's economy and infrastructure.

As the toll network expands, it is likely that the state government will face challenges in implementing the new toll roads and collecting revenue from vehicle owners. However, the potential benefits of the expanded toll network, including increased revenue and improved infrastructure, make it a significant step forward for the state.