Kerala: Toll charges to apply on KIIFB roads with investment over Rs 50 cr

Thiruvananthapuram: The government has moved to impose toll charges on roads being constructed under the KIIFB (Kerala Infrastructure Investment Fund Board) project. Toll will only be collected on roads with an investment of over Rs 50 crore. This decision was approved by a ministerial committee chaired by the Chief Minister. The meeting was attended by the Ministers of Law and Finance. The matter will soon be presented for Cabinet consideration.

The inclusion of KIIFB projects in the state's public accounts has led to a setback in its ability to arrange financing through loans for infrastructure development. In response to the reduction in the loan ceiling, both the government and the Supreme Court have been approached. KIIFB plans to implement a toll collection system similar to that of the National Highway Authority.

On national highways, toll charges are fixed at each booth regardless of the distance traveled. However, on KIIFB roads, toll will be based on the distance traveled at each booth. Local residents will be exempt from toll charges. Although the Cabinet has decided to implement legislation for toll collection, the matter has been kept highly confidential.

KIIFB has already begun studying the implementation of toll collection. In response to the central government’s claim that KIFB loans are increasing the state’s debt burden, Kerala argued that central institutions also operate similarly. However, the counter-argument is that these institutions generate revenue. The central government had pointed out the toll revenue from the National Highway Authority, and it is within this context that KIIFB has moved to introduce toll collection on its roads.

In response to concerns raised by the Comptroller and Auditor General (CAG) reports and the central government's stance on the KIIFB debt burden, the decision to collect tolls has been made to overcome the difficulty of securing loans for the projects. During a meeting chaired by the Chief Minister, KIIFB officials stated that it would no longer be possible to proceed without tolls. Currently, the repayment of KIIFB loans is funded through the fuel cess and half of the motor vehicle tax. Initially, the CPM opposed tolls, but following a change in stance, there are no policy issues with moving forward with this decision.