Driving In Madhya Pradesh To Get Costlier As More Roads Come Under Toll, PWD Eyes ₹3,000 Crore Revenue
Bhopal (Madhya Pradesh): Driving in Madhya Pradesh could become costlier as the government plans to bring more roads under the toll network, with at least 12 additional roads already proposed for toll collection and more in the pipeline. There are at least 139 toll plazas on 93 roads under different schemes of the Madhya Pradesh Road Development Corporation (MPRDC), which is an offshoot of the…
Bhopal, Madhya Pradesh - In an effort to boost revenue, the Madhya Pradesh government is considering expanding its toll road network, according to sources within the Public Works Department (PWD). Currently, there are 139 toll plazas on 93 roads managed by the Madhya Pradesh Road Development Corporation (MPRDC), a subsidiary of the PWD.
While the PWD's toll collection is a mere Rs 400 crore annually, the National Highways Authority of India (NHAI) garners around Rs 4,000 crore annually. Realizing the significant disparity, the PWD is aiming to increase its toll collection target to Rs 2,000 crore to Rs 3,000 crore per annum over the next decade. To accomplish this, more roads will need to be constructed under the toll model.
Sukhveer Singh, Principal Secretary of the PWD, highlighted that revenue from additional toll-based roads would contribute to the department's overall earnings, thereby increasing its share of state revenue. The PWD is now leaning towards the Hybrid Annuity Model (HAM) over the Build Operate Transfer (BOT) model for constructing roads.
Under HAM, the PWD finances 40% of the project cost during construction through milestone-linked payments, while the private developer covers the remaining 60%. Under this model, toll collection remains within PWD's control. Recently, several roads have been sanctioned under HAM, including Seoni-Balaghat, Vidisha-Bhopal, and Damoh-Katni, with more slated to follow.
Sunil Verma, an MPRDC officer handling toll tax-based road works, confirmed that toll plazas under the MPRDC scheme span 93 roads in total.
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