Know How Delays at Toll Plazas Cost the Country

Toll plazas were meant to be a boon to the transportation industry – long stretches of perfect-condition roads which trucks and commercial vehicles could access at a small payment. However, a study conducted in the recent past by Transport Corporation of India Ltd (TCI) in association with IIM-Calcutta found that these toll plazas did the nation more harm than profit. Delays at toll plazas on high-volume routes across the nation cost the country close to INR 60,000 crore annually.

The trucking industry accounts for 4.5-5 percent of India’s GDP and even more importantly, is the backbone of the nation’s economy. It supports several industries by transporting goods from one place to another throughout the year. However, delays at toll gates mar the profits for industry players themselves. According to the report, “On an average, there are 18 stops and the average stoppage delay is three hours, about three percent of the journey time. Toll stoppages account for almost 79 per cent of the stoppage delay on an average.”

Furthermore, the loss in truck-operating hours tells just one part of the story. Toll has also become the second largest expense borne by the trucks and commercial vehicle industry after fuel. Over 1 crore registered trucks and buses ply on Indian roads. And on an average, a truck with a national permit pays around INR 4-5 lakhs in a year in tolls alone.

Therefore the idea of covering the distance quickly on perfect roads with a small payment at a toll has now translated to long delays and heavy costs without any evident benefit. Transporters bear the brunt of it all and rightfully complain that while the average usage of a truck has remained the same, operational costs have gone significantly up. To add to the agony is the fact such large-scale collections are not reflected adequately in the state and central budgets. And tolls stay in place even long after recovering the construction costs.

The mammoth loss incurred by the transportation industry takes a toll on the entire nation. A rise in operating costs would subsequently mean a rise in charges demanded by the industry players – which would again take a toll on the national economy. While the intended motive behind setting up tolls remains positive, their effect is in striking contrast to it. A loss of INR 60,000 crore can be prevented by ensuring shorter delays, lower charges or proper spending on infrastructure. If trucks and commercial vehicles are indeed the backbone of the economy, they should be treated so. Toll plazas should speed up the delivery process with quality roads, not delay it with glaring shortcomings.