Daily Happenings Blog

Toll Tax

Today there is a news item in news papers that Maharashtra govt is going to extend the toll collection at Mumbai Entry point at Vashi, Worli Sea Link Road and Mumbai Pune Express way  by few years more. This they are going to do for financing future projects. This is rather new innovative idea by someone in govt to tax  citizen in advance without doing any concrete work. Earlier citizens used to pay toll tax on the completion of infra projects and now they want us to pay in advance for god knows which projects. And what is the guarantee that the future govt will not charge again  toll tax on those infra projects.

Few facts on toll tax collections:

1.Mumbai Pune Express Way- Cost of the project Rs 2,800 crores, toll period from 2002 t0 2030, toll collected till now Rs 4,700 crores , toll collection to be extended till 2045. Toll collection expected till 2019 is Rs 6,700 crores and additional Rs 5,300 crores till 2030. So till the end of 2030, govt will collect a toll tax of Rs 12,000 crores against cost of  Rs 2,800 crores. Can some one from govt will explain what they have done with additional Rs 1900 crores collected till now, what are their plans for the additional collections of Rs 7,300 crores which they are going to collect from now till 2030. Going by the current rate they will collect Rs 10,000 crores  more from 2030 to 2045, any plans for this collections.

2. Worli Sea Link- cost of project  Rs 1700 crores, toll period from 2009 to 2039, toll collected till now Rs 600 crore. Toll collection expected till 2039 Rs 7,200 crores. toll collection to be extended till 2068 , that means almost 50 years more. If during first 30 years they are estimating collections of  Rs 7,200 crores,it means for next 29 years (from 2039 to 2068) collection should be at least Rs 12,000 crores.

3.Mumbai Entry Points-cost of project Rs 2,100 crores, toll period from 2010 to 2027, toll collected till date Rs 2,100 crores. Toll collection expected till 2027 Rs 11,540 crores, toll to be extended till 2039.  for next 12 years (from 2028 to 2039) you can very well estimate additional Rs 8,000 crores.

You will notice from the above that the govt will going to have additional funds after today

a. from Express way Rs 17,300 crores till 2045

b. from Worli Sea Link Rs 17,500 crores till 2068

c.from Entry points Rs 17,400 crores till 2039.

Do you think our govt can plan for projects for next 20 to 50 years.  it took almost 8 years to realise the first metro project in Mumbai. New Mumbai airport is in planning stage for last 15 years. we do not know when the balance metro projects in Mumbai metropolitan region will be completed and govt  wants us to keep on paying toll tax , it looks like, for eternity. Govt can not ask citizens to keep on paying the toll tax even after the cost of project is recovered, and what an irony now govt wants us to  keep on paying toll tax for their future projects, which are still not defined. It is clear cut case of cheating the citizens.

What you say my friends.

Awaiting for your feed backs and comments.

2 comments

  1. R. J. Dhople

    I have something to start with, what I gathered from the examples of USA and Canada.
    The Golden Gate Bridge which was completed in 1937, collects toll till today, the logic based on the maintenance cost of the bridge.
    In Vancouver several old bridges are also collecting toll. These are all steel bridges constructed on rivets and not welded like the one at Dads Tikam Bridge and many others built in Mumbai. Welding technology is the latter invention.
    Not that I wish support the Government, but few facts which need to be realised while viewing at the Government decision logical or completely illogicall .
    The fact that during previous Government certain projects were not completed even after the schedule of completion is a big set back for the present Government with additional burden of farmers loan. The set backs created earlier itself have been a big headache, with high expectations from public and forced through the opposition to gain power somehow to fulfill their own agendas.
    I sincerely feel that we need to support this Government temporarily, to break the obstruction created and the issues can be reviewed subsequently when the time comes. I feel it’s our duty to support this Government who seems to be more honest in their dealings. When the Government is trying it’s best in the public interest to upgrade the state with all its might, it needs the support from the Public. Everything we earn, does not belong to us, since we need to give back to the society as we are using the infrastructure created by previous generation through taxes and hard work. Our future generations are capable of handling the situation with wisdom should not be forgotten. As of today, I feel it’s our duty to support a honest Government.

  2. Bobby

    Great fact finding Anil; a ‘ toll on govt. dreams’ What next I wonder, and meanwhile our hard earned money going as taxes, is used to pay for the waiver of farmer loans and keeping Air India afloat! And who are some of those farmers, the very guys who paint dreams and make us pay a toll on them! Wow!

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