TenderTiger

Private Sector | Maharashtra - India | PID: 203636
The five primary toll booths in Mumbai, located at Vashi, Lal Bahadur Shastri (LBS) Road in Mulund, the Mulund Eastern Express Highway (EEH), the Dahisar Western Express Highway (WEH), and Airoli, are vital access points to the city. Toll rates for light motor vehicles were last adjusted in October 2023, increasing to Rs 45. Typically, these rates are evaluated every three years. With this new ruling, personal and other light vehicles will no longer be required to pay this Rs 45 toll.

The toll exemption is expected to assist approximately 280,000 light motor vehicles that traverse these entry points each day, as reported by a senior official from the Maharashtra State Road Development Corporation (MSRDC). Of the total 350,000 vehicles passing through these toll booths, light motor vehicles constitute 80% of the traffic. Daily revenue from these five entry points totals around Rs 1.5 crore. With the exemption for light motor vehicles, the government anticipates a revenue decline of about Rs 50 lakh per day. The official noted that although light motor vehicles represent a larger volume, their toll payments are significantly lower than those of heavier vehicles, meaning that trucks and large commercial vehicles contribute a more substantial share of the revenue.

The toll waiver arrives just before the Maharashtra Assembly elections and has been a persistent demand for many. The issue has sparked numerous protests, particularly from the Maharashtra Navnirman Sena (MNS), led by Raj Thackeray. Thackeray, a prominent opponent of toll collections in Mumbai and across Maharashtra, praised the decision. “We have fought hard for this, and it has finally been achieved. While this decision comes late, it is a victory for the people. I only hope it’s not merely an election tactic,” he commented following the announcement.

The toll at Mumbai's five entry points was first introduced in 2002 through a government notification. In 2010, the MSRDC, the authority overseeing these toll booths, undertook the “securitisation” of the five entry points along with the maintenance of flyovers and associated infrastructure. This monetisation strategy involved a contract with MEP Infrastructure Pvt Ltd, which was awarded Rs 2,100 crore upfront for a 16-year concession to collect tolls at these five points and maintain 27 flyovers and related structures. The toll collection has been ongoing for nearly 15 years, with the current contract set to expire in 2026.

To make up for the lost revenue from the toll exemptions, the government will compensate the concessionaire until the contract concludes in 2026. After that, compensation will continue to be provided to the MSRDC until 2027. Regarding the Vashi toll booth, toll collection has been extended until 2036 due to the ongoing construction of Thane Creek Bridge 3, which is currently partially open to traffic. The MSRDC official mentioned that while toll collection will end at the other four entry points after 2027, tolls may still be charged for heavy vehicles at Vashi.
| Updated on: 15 - Nov - 2024
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