No takers for Toll Plazas on 15 State Highways

No takers for Toll Plazas on 15 State Highways

November 4, 2018

Bengaluru: Private players so far have not shown interest in setting up Toll Plazas on State Highways developed by the Government of Karnataka under funds provided by World Bank and Asian Development Bank (ADB) schemes.  

The State Government had widened and developed more than 17 State Highways after taking huge loans from various lending agencies. The government, in order to recover its investments by collecting toll,  invited private firms to set up their Toll Plazas.

However, officials in the government say that the private players are not inclined to set up the Toll Plazas due to alleged opposition from local people, who  are not ready to pay the toll.

They also cited poor revenue collection, low profit margin and lack of service road on the proposed State Highways. Bidders also feel that setting up Plazas on these Highways will not be financially viable after investing on infrastructure and staff.

Of the 17 State Highways, the private players had set up their Plazas on two Highways and collecting the toll but there are no takers for the remaining 15 Highways. This has become a headache for the State government, which had developed these Highways under Build-Operate-Transfer (BOT) scheme in 2010. As per this model, the Government had decided to collect the toll in all 17 State Highways including Padubidre- Karkala stretch,  Hosakote- Chintamani, Tumakuru- Pavagada, Mudugal-Tavaregere Roads.


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