‘Collect toll or lose PPP project’

The central government has warned the Karnataka government that if it does not go ahead with collection of toll on the Bellary Road (NH 7), it will lose national highway development projects under the public private partnership (PPP) across the State.

The State government, which is facing a revolt by various transport organisations who object to paying the toll on this road until the entire project is completed, will have to abide by the Union government’s directive, said a minister on condition of anonymity.

Under the tripartite support agreement between the State and Union governments and the National Highway Authority of India (NHAI), there is a clause empowering the concessionaire or the contractor to collect the toll fee even before the proposed project is completed, said highly placed sources in the PWD department.

The State government had earlier realised that agreeing to this clause was a mistake and had made several attempts to get out of it.

The present and former chief ministers had written to the Union government to amend the clause.
To prevent the embarrassment of the concessionaire being taken to court, the Union government has directed the State government to abide by the tripartite support agreement and allow the contractor to collect the toll fee.

Though the State government has failed to persuade the contractor to accept alternatives, it did manage to get the contractor to agree to collect the toll on the return trip, thus avoiding delays to passengers bound for the international airport.

As an alternative measure, the government suggested that the contractor defer the date of starting toll collection, but the contractor did not agree.

“In a bid to attract contractors, to reduce the duration of maintenance to the contractor and to have a competitive spirit, the Union surface transport ministry authorised the contractors to collect toll fee even before the completion of the project,” added sources.