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This is an archive article published on May 20, 2010

MPs,MLAs exempted from paying toll for road development

In what may come as an additional perquisite to the country’s legislators,the empowered group of ministers (E-GoM) set up to...

In what may come as an additional perquisite to the country’s legislators,the empowered group of ministers (E-GoM) set up to resolve issues in the implementation of the National Highways Development Programme (NHDP) has exempted all members of Parliament (MPs) and members of Legislative Assemblies (MLAs) from paying toll anywhere in the country. In a decision taken today by the E-GoM headed by finance minister Pranab Mukherjee,it was decided that MPs and MLAs would not have to pay the fee charged to commuters on using road services rendered either by the government or the private developer. The fee or toll goes towards a common kitty utilized for the development and maintenance of the particular highway.

This decision will not only exempt them from paying toll while on official tours but also benefit them when they travel with their families for personal reasons. However,it is not clear so far whether the government will compensate private developers for the loss of toll fee when such an MP or MLA labelled vehicle passes their collection booth. Over 60 per cent roads in the country are being built on the build-operate-transfer under public private partnership (PPP). In such an arrangement,the private developer invests in the project and the cost is recovered by way of a toll that is levied on the vehicles passing through the highway over a long concession period of 20 or 30 years. There are over 500 serving MPs and over 1,000 MLAs in the nation today.

The E-GoM also gave its in-principle nod to the second set of recommendations made by the B K Chaturvedi committee set up for resolving problems specific to the roads sector. “While the E-GoM has approved the dispute resolution mechanism suggested by the B K Chaturvedi committee,the matter will still have to be approved by the board of the National Highways Authority of India and will be further put up for approval of the Cabinet Committee on Infrastructure (CCI),” a senior ministry official said. Under this,the committee recommends a bucket based approach to resolving disputes between the NHAI and developers involving over Rs 4,000 crore.

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