Question : AUCTION OF TOLL PLAZAS



(a) whether the National Highways Authority of India (NHAI) has decided to auction its toll plazas to the private sector for collection of toll tax on the National Highways for a fixed period;

(b) if so, the details and the reasons therefor;

(c) the additional revenue likely to accrue to NHAI from such a move;

(d) whether the NHAI has taken adequate steps to protect the interests of the tax payers from the tendency of private companies to earn more profit; and

(e) if so, the details thereof?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (SHRI R. P. N. SINGH)

(a): National Highways Authority of India (NHAI) has decided to engage user fee collecting agencies for a fixed period through open competitive bidding system and not through Auction.

(b): NHAI has been facing lot of problems in the management of toll plazas currently undertaken through Directorate General of Resettlement (DGR) sponsored ex-servicemen. They are as follows:

(i) Sub-letting of the plazas by the ex-servicemen.

(ii) Non payment of DGR salary to the employees.

(iii) As per the requirement of DGR the agency has to employee at least 90% ex-servicemen but in most of the sections percentage of ex-servicemen was much less.

(iv) Pilferage of revenue.

(v) Delay in sponsorship by the DGR.

(c): The Toll plazas will be given to the eligible bidders who quote the highest amount and market forces will decide the bid amount. Therefore, the likely revenue cannot be forecast.

(d) & (e): Yes Sir. There is a mandatory provision to deploy minimum number of personnel at the plaza so that all lanes will be kept open all the time. Also there is a penal provision for over charging, viz; (i) 50 times of actual amount overcharged per day for 30 days;ii) on occurrence of 3 such incidences, performance security to the extent of one months agreed remittance shall be forfeited and if the incident of excess charging is again observed, the contract shall be terminated.