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This is an archive article published on October 14, 2024

Toll waiver in Mumbai: What is the decision, who will benefit

Maharashtra cabinet announcement: Light motor vehicles will no longer have to pay toll of Rs 45 at five of Mumbai's entry points. Here is what this will mean for commuters and the govt.

Mumbai toll exemptionThe toll exemption will benefit around 2.80 lakh light motor vehicles. (Express file photo: Pradip Das)

Maharashtra Govt Announces Complete Toll Waiver: In a move that will benefit lakhs of commuters and also ease Mumbai’s traffic woes, the Maharashtra government has announced toll exemptions for light motor vehicles at five of the city’s entry points.

The decision, made during a cabinet meeting held on Monday (October 14), will come into effect from midnight today, Chief Minister Eknath Shinde said.

What changes with the decision?

Mumbai’s five major toll booths — at Vashi, Mulund’s Lal Bahadur Shastri (LBS) road,

Mulund Eastern Express Highway (EEH), Dahisar Western Express Highway (WEH), and Airoli — serve as crucial entry points into the city. Toll rates for light motor vehicles (vehicles smaller than trucks and buses) were last revised in October 2023, with an increase of Rs 5, raising them to Rs 45. Toll charges are typically reviewed every three years.

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With this decision, personal vehicles and other light vehicles will no longer have to pay the Rs 45 charge.

How many commuters benefit?

The toll exemption will benefit around 2.80 lakh light motor vehicles passing through these entry points daily, according to a senior MSRDC official. Out of the total 3.50 lakh vehicles passing through the toll booths, light motor vehicles account for 80% of the traffic.

The total revenue collected from these five entry points amounts to Rs 1.5 crore per day. With light motor vehicles now exempted, the government expects a revenue loss of approximately Rs 50 lakh daily.

The official explained that although the number of light motor vehicles is more, the toll they pay is lower than heavy vehicles, and thus in terms of revenue share, trucks and other large commercial vehicles make up much more.

Was this a long-standing demand?

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Coming just ahead of the Maharashtra Assembly elections, the waiver has been a long-standing demand. The issue of tolls has also witnessed several protests, particularly from the Maharashtra Navnirman Sena (MNS) led by Raj Thackeray.

Thackeray, who has been a vocal critic of toll collection not only in Mumbai but across Maharashtra, welcomed the decision. “We’ve been fighting this for a long time, and finally, it’s been achieved. Though the decision came late, it is a victory for the people. I only hope it’s not just an election ploy,” Thackeray said after the announcement.

Since when was this toll being collected in Mumbai?

In 2002, the government via a notification imposed toll at five entry points of Mumbai. In 2010, Maharashtra State Road Development Corporation(MSRDC), the nodal agency for these toll points, did “securitisation of five mumbai entry points along with maintenance of flyovers and allied structures.”

In this mode of monetisation, the MSRDC signed a contract with MEP Infrastructure Pvt Ltd. The contract, valued at Rs 2,100 crore as an upfront payment, granted MEP a 16-year concession to collect tolls at these five entry points, as well as maintain 27 flyovers and associated infrastructure.

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It has now been 14 years and 11 months since the toll collection started, with the contract set to expire in 2026.

What happens to the payment now?

To compensate for this, the government will directly pay the concessionaire for the lost revenue until the contract’s expiration in 2026. For the remaining period until 2027, this amount will be paid to the MSRDC.

As for the Vashi toll booth, the collection here has been extended till 2036 due to the construction of the Thane Creek Bridge 3, which is partially open to traffic now. The MSRDC official indicated that while toll collection at the other four entry points will cease after 2027, tolls may continue for heavy vehicles at Vashi.

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