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MSRDC mulls toll extension to avoid 900-crore payout

Jan 11, 2025 08:10 AM IST

Maharashtra plans to extend toll collection for heavy vehicles at five Mumbai plazas to offset ₹900 crore owed to contractors after waiving passenger tolls.

MUMBAI: The Maharashtra State Road Development Corporation (MSRDC) is considering extending the toll collection period for heavy and commercial vehicles at five Mumbai toll plazas. This move aims to offset a 900 crore compensation owed to contractors after waiving tolls for passenger cars and small vehicles. The exemption, announced by former chief minister Eknath Shinde before last year’s assembly elections, applies to toll plazas at Dahisar, Anand Nagar, Vashi, Airoli, and Mulund.

MSRDC mulls toll extension to avoid <span class='webrupee'>₹</span>900-crore payout
MSRDC mulls toll extension to avoid 900-crore payout

During the election model code of conduct, an MSRDC survey revealed the state’s liability for the toll waiver. Faced with financial challenges due to welfare schemes like the ‘Ladki Bahin’ programme, which provides 1,500 monthly to underprivileged women, the government instructed the MSRDC to find alternatives to defer the payment. Extending the toll rights beyond 2027 is seen as a potential solution to ease the financial strain.

“We are conducting a study to examine the feasibility of extending toll collection for heavy and commercial vehicles,” said MSRDC managing director Anil Gaikwad. If this plan is not viable, the state may need cabinet approval to release the compensation funds.

Sources indicate the toll waiver decision was made without a detailed feasibility study. The Mahayuti government—a coalition of Shiv Sena, BJP, and NCP—introduced the exemption on October 14 to appeal to Mumbai voters.

The tolls, originally implemented to fund flyover construction during the Shiv Sena-BJP government in the 1990s, are managed by Mumbai Entry Point Limited (MEPL). MEPL’s contract for most toll plazas extends to 2027, with the Mankhurd-Vashi entry point covered until 2036.

Currently, the MSRDC charges 45 for light vehicles and 75 for buses and trucks at these tolls, generating revenue for maintaining 55 flyovers. The toll waiver resembles a 2015 BJP-led government initiative that removed tolls on the Sion-Panvel highway while retaining collections at major points like the Bandra-Worli Sea Link and Mumbai-Pune Expressway.

The present government faces a balancing act between voter-friendly measures and financial responsibility.

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