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12 Feb 2026·Source: The Indian Express
3 min
EconomyPolity & GovernanceNEWS

Toll Collection in India Set for Record High in FY26

Toll collection led by Rajasthan, UP, and Maharashtra is set for record.

Toll collection in Rajasthan, Uttar Pradesh, and Maharashtra is expected to reach a record high in FY26, driven by increased traffic and infrastructure development. The rise in toll revenue reflects growing economic activity and improved road connectivity in these states. Enhanced toll collection will support further investments in highway maintenance and expansion projects, contributing to overall infrastructure development and economic growth.

UPSC Exam Angles

1.

GS Paper 3 (Economy): Infrastructure development, tolling policies, government revenue

2.

Connects to syllabus topics like infrastructure, economic growth, government policies

3.

Potential question types: Statement-based, analytical, current affairs focused

Visual Insights

States with High Toll Collection in FY26

This map highlights Rajasthan, Uttar Pradesh, and Maharashtra, where toll collection is expected to reach a record high in FY26 due to increased traffic and infrastructure development.

Loading interactive map...

📍Rajasthan📍Uttar Pradesh📍Maharashtra
More Information

Background

The concept of toll collection in India has evolved significantly over time. Historically, road construction and maintenance were primarily funded through general tax revenues. However, with increasing infrastructure demands, the need for dedicated funding mechanisms became apparent. This led to the introduction of tolling systems, initially on a limited scale, to finance specific projects. The National Highways Act of 1956 provided the initial legal framework for levying fees for the use of national highways. Over the years, the tolling system has undergone several changes. The introduction of the Public-Private Partnership (PPP) model in infrastructure development has further propelled the growth of toll-based projects. This model allows private companies to invest in road construction and recover their investment through toll collection over a specified period. The evolution of toll collection methods, from manual booths to electronic toll collection systems like FASTag, has also improved efficiency and reduced congestion. The legal and constitutional framework for toll collection is primarily derived from the National Highways Act of 1956 and subsequent amendments. The act empowers the central government to levy and collect fees for the use of national highways. The revenue generated from toll collection is earmarked for the maintenance and development of national highways. The Ministry of Road Transport and Highways (MoRTH) is the nodal agency responsible for formulating policies and guidelines related to toll collection.

Latest Developments

Recent government initiatives have focused on enhancing the efficiency and transparency of toll collection. The widespread adoption of FASTag has significantly reduced waiting times at toll plazas and improved traffic flow. The government is also exploring the use of advanced technologies like GPS-based tolling systems to further streamline the toll collection process. There are ongoing debates regarding the optimal toll rates and the impact of toll collection on local communities. Some stakeholders argue that high toll rates can burden commuters and businesses, while others emphasize the importance of toll revenue for infrastructure development. Balancing the interests of all stakeholders is crucial for ensuring the long-term sustainability of the tolling system. The future outlook for toll collection in India is positive, with continued growth expected in the coming years. The government's focus on infrastructure development, coupled with increasing traffic volumes, will drive toll revenue growth. The implementation of innovative tolling technologies and policy reforms will further enhance the efficiency and effectiveness of the toll collection system. The government aims to expand the national highway network by 25,000 km by 2025, which will further boost toll revenue. The Bharatmala Pariyojana is a key initiative in this regard.

Frequently Asked Questions

1. What is the significance of toll revenue for infrastructure development in India?

Toll revenue is crucial for funding highway maintenance and expansion projects. Increased toll collection supports further investments in infrastructure development, contributing to overall economic growth.

2. Which states are expected to lead in toll collection in FY26, and what does this indicate?

Rajasthan, Uttar Pradesh, and Maharashtra are expected to lead in toll collection in FY26. This indicates growing economic activity and improved road connectivity in these states.

3. How does increased toll collection impact the common citizen?

Increased toll collection can lead to better-maintained roads and reduced travel times. This can improve transportation efficiency and contribute to economic benefits for citizens.

4. What are the recent developments in toll collection technology in India?

Recent developments include the widespread adoption of FASTag to reduce waiting times and the exploration of GPS-based tolling systems to further streamline the toll collection process.

5. What is the estimated toll collection amount expected in FY26?

The estimated toll collection amount expected in FY26 is ₹50,345 crore.

6. What are the pros and cons of relying on toll revenue for infrastructure development?

Pros: Dedicated funding for road projects, encourages private investment. Cons: Can increase transportation costs for users, potential for inequitable burden on frequent travelers.

Practice Questions (MCQs)

1. Consider the following statements regarding toll collection in India: 1. Toll collection in Rajasthan, Uttar Pradesh, and Maharashtra is expected to reach a record high in FY26. 2. Enhanced toll collection will support further investments in highway maintenance and expansion projects. 3. The National Highways Act of 1956 does NOT provide the legal framework for levying fees for the use of national highways. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: The news summary explicitly states that toll collection in Rajasthan, Uttar Pradesh, and Maharashtra is expected to reach a record high in FY26. Statement 2 is CORRECT: The news summary mentions that enhanced toll collection will support further investments in highway maintenance and expansion projects. Statement 3 is INCORRECT: The National Highways Act of 1956 DOES provide the legal framework for levying fees for the use of national highways. This act empowers the central government to collect fees.

2. Which of the following is NOT a likely outcome of increased toll revenue collection in India?

  • A.Increased investment in highway maintenance
  • B.Expansion of the national highway network
  • C.Reduced economic activity in states with high toll collection
  • D.Improved road connectivity
Show Answer

Answer: C

Increased toll revenue collection is expected to support further investments in highway maintenance and expansion projects, leading to improved road connectivity. This, in turn, would stimulate economic activity, not reduce it. Therefore, reduced economic activity in states with high toll collection is NOT a likely outcome. Options A, B, and D are all positive outcomes directly linked to increased toll revenue.

3. Consider the following statements regarding the Public-Private Partnership (PPP) model in infrastructure development: 1. PPP model allows private companies to invest in road construction and recover their investment through toll collection. 2. The PPP model has no impact on the growth of toll-based projects. 3. The Ministry of Finance is the nodal agency for PPP projects in India. Which of the statements given above is/are correct?

  • A.1 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: The PPP model indeed allows private companies to invest in road construction and recover their investment through toll collection over a specified period. Statement 2 is INCORRECT: The PPP model has significantly propelled the growth of toll-based projects by attracting private investment and expertise. Statement 3 is INCORRECT: While the Ministry of Finance plays a role, the Ministry of Road Transport and Highways (MoRTH) is the primary nodal agency for highway projects, including PPP projects related to roads.

Source Articles

India’s Highway Toll Collection Set to Hit All-Time High in FY26 as These 5 States Lead the Industrial Charge

The Indian Express·12 Feb 2026

With UP, Rajasthan & Gujarat topping the user fee listing, FY25 toll collection headed for a new record | India News - The Indian Express

The Indian Express·12 Feb 2026

From the historic Grand Trunk Road to the nation’s longest highway — Country’s top 10 toll plazas collect Rs 14,000 crore in 5 years | Business News - The Indian Express

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Toll collection on national highways: UP tops the list with `756 cr revenue | India News - The Indian Express

The Indian Express·12 Feb 2026

Almost Rs 12,000 crore collected as toll on Jaipur-Delhi highway, MP asks: ‘Why should common man pay when condition so poor?’ | India News - The Indian Express

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