Government Slashes Toll Rates by Up to 50% on National Highways Featuring Major Structures

In a significant relief for highway commuters, the Government of India has announced a substantial reduction in toll charges—by as much as 50%—for specific sections of National Highways that include large infrastructure such as tunnels, bridges, flyovers, or elevated corridors. The move, formalized through an amendment to the National Highways Fee (Determination of Rates and Collection) Rules, 2008, is expected to ease the financial burden on motorists and rationalize toll collection across structurally intensive highway stretches.

The Ministry of Road Transport and Highways (MoRTH) issued the notification on July 2, 2025, introducing a revised formula for determining user charges on such segments. The new rule redefines how toll rates are computed for highways incorporating "structures"—which the Ministry describes as standalone features such as bridges, tunnels, flyovers, or elevated highways.

According to the revised fee structure, the toll for such segments will be calculated using a comparative formula:

"Ten times the length of the structure(s) added to the non-structured segment of the highway, or five times the total length of the highway section—whichever is lesser."

To illustrate, if a 40 km stretch of National Highway comprises only elevated structures, the toll computation will consider:

• 10 × 40 km = 400 km (traditional structure-based approach)

• 5 × 40 km = 200 km (cap under the new formula)
  Hence, the user will now pay the toll applicable to 200 km instead of 400 km—effectively halving the cost.

This overhaul of the toll policy responds to longstanding criticisms regarding disproportionately high user fees for infrastructure-heavy road segments. Previously, motorists were required to pay ten times the standard toll rate for every kilometer of structural elements—an approach justified by the higher construction and maintenance costs associated with such builds. However, many argued it unfairly penalized regular highway users.

A senior National Highways Authority of India (NHAI) official clarified that the update aims to “bring uniformity and fairness” to the toll system while still accounting for the capital-intensive nature of structural highway assets.

While the reduction won’t apply to all highways uniformly, it is expected to directly benefit users of some of the most expensive and high-density corridors across India, including parts of expressways with long tunnels, flyovers, and urban bypasses.

With the latest amendment, the government signals a balance between cost recovery for infrastructure investment and affordability for the traveling public, potentially encouraging greater usage of national highways and reducing logistical overhead for freight and private transport alike.