NHAI Partners with Banks for Toll Collection

The National Highways Authority of India (NHAI) is set to revolutionize toll collection in India by partnering with banks to implement a Multi-Lane Free Flow (MLFF) system. This innovative approach eliminates the need for physical toll booths, streamlining the tolling process and reducing traffic congestion.

The first MLFF toll system will be introduced on a new 28-kilometer urban expressway connecting Delhi and Gurgaon. This expressway will feature a single toll point near the Delhi-Gurgaon border, where vehicles will be automatically charged without stopping. The toll amount for this section is yet to be determined.

The NHAI will select a bank through a bidding process, with the highest bidder securing the rights to manage the tolling operations. The bank will be responsible for developing and implementing the MLFF system within the first three months of contract award. To facilitate this process, the NHAI’s tolling arm, IHMCL, may allow the bank to subcontract to experienced companies specializing in MLFF systems.

The NHAI’s decision to partner with banks aims to ensure transparency and efficiency in toll collection. By leveraging the robust regulatory framework of the Reserve Bank of India (RBI), the NHAI expects to minimize revenue leakage and enhance the overall tolling experience.

The successful implementation of the MLFF system on this expressway could pave the way for its adoption on other highways across India, leading to reduced traffic congestion, improved air quality, and a more efficient transportation system.