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BMIC - Why so high toll on NICE road?

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Kind of tired now of reading once-in-a-while-news-updates on NICE vs State of Karnataka case in Supreme Court. Also tired of seeing blatant self-promotion (misuse? illegal?) by Mr Ashok Kheny on his state-given PPP land. But more than that, why are the tolls so high on the NICE peripheral road?

15.4 Km drive from Banerghatta Road to Mysore road costs Rs 50. That is more than 3.25 Rs per kilometer. On NHAI tolled roads, I don't think we pay any more than 1- 1.5 Rs / Km. I am talking rates for cars (LMV).

Not very well versed on the subject - how are toll rates determined for all those well doneNHAI roads? But from what I see as a mango man, NICE got land for less, got the rights to develop cities etc as well (and lots of airspace for self promotion errr advertizing display too, right Mr Kheny!?) - and these are not the concessions that NHAI contractors get. Yet the toll on NICE roads is more than double the normal. What exacty is the logic?

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silkboard's picture

3.42 per Km

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Sri had posted earlier tolls were revised to Rs 3.42 / Km an year ago, in Jan 2012.. http://www.thehindu.com/todays-paper/article2770029.ece

Quotes from this old news article:

Questioning the legality of the hike, Mr. Shanmugappa said it was a violation of an NHAI agreement, which stated that the toll should be decreased for every 5 per cent increase in vehicular traffic. “However, even with a 15 per cent increase in vehicle movement on the road, NICE has been unjustly increasing toll,” he said, adding that the lack of amenities on the road for lorry drivers did not justify the high toll.

and on the comparison with NHAI

With the hike, the fare for a light motor vehicle (LMV) on the road would be increased to Rs. 3.42 a km, which is more than five times the Rs. 0.65 charged by National Highways Authority of India (NHAI).

srinidhi's picture

nothing clear..guess by design..

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Yes toll on NHAI roads are typically around 80 Paise per km these days..however NICE ppl always quote some MOU with GoK which allows them to raise toll as they want and they go about hiking tolls..so what allowed GoK/Yeddys govt to sign up on this anti-public agreement? How to annul it?

There is a new twist to the story now with the case from Mr TJ Abraham where he says that the toll was supposed to be collected till 2010 only and the peripheral road was supposed to become toll freee after that..that is considering the 111Kms was ready to Mysore..

http://beta.deccanchronic...

Also about the illegal land deals, Lokayukta was earlier searching the land sold off to private housing builders by Kheny..dont really know where that stands..

On the whole, the whole road project stinks of scams and all political parties have had a say in it because of the real estate involved..

 

Bangalore is Mine's picture

Under reporting accurtae figures.

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Historically, many a times the Toll charges are not mimized with the increase in traffic. This happens because of disagreement in the projections. It is said tht the Toll collectors under-report the traffic figures to ensure the charges are not minimised

This was the chief reason why the MNS (lead by Raj Thackery) 'forced' people in Maharashtra not to pay toll charges as, they strongly beleived that thieir figures on traffic was highly under-reported.

Of course, a group like MNS would be using this for political mileage, but the point still stands.

Vimal

srinidhi's picture

guess data is not an issue..

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The amount of toll collected may not be difficult to get to since all toll collection has been automated..its there other agreements/MOU'd that the govt has had with them which gives them a free hand to do anything..

As they say, hiding information/data is the biggest crime!

n's picture

The high toll is likely due

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The high toll is likely due to other sources of income being unavailable.  In case of NHAI roads, there is a viability gap funding (VGF) by govt.  NICE was not provided any funding by the govt.  Yamuna expressway appears to be charging Rs. 2.10 for cars.  According to toll policy review document (please feel free to attach to OP),

User fee rates for BOT projects are notified based on project viability.

Newspaper reporters don't appear to do a lot of research.  They just print as facts, lines from speeches of politicians or bureaucrats.


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