After the government’s decision to stop toll collections on National Highways till the midnight of November 18, National Highways Authority of India (NHAI) has proposed to compensate up to 75% of the losses due to the move resulting from demonetization. NHAI Chairman Raghav Chandra said that on an average daily toll collection is around Rs 60-75 crore across the country so the loss they are facing is very huge. Therefore, they have proposed that they will make interim relief to these concessionaires by paying nearly 75% of the losses to ease their cash flow.
Chandra said that NHAI has put forward the proposal to the government for its approval. He added that there are around 100 tolls which are publicly funded and around 265 private tolls. But these 100 publicly funded tolls have also been given on contract to private operators. So, to ensure that these also don't face cash flow problem because of the decision, they have decided to provide the relief even to these tolls. He also said that this move is necessary for the concessionaires so that they don't face huge licenses and they will be able to support the government's demonetization plans.
After the Prime Minister Narendra Modi’s decision to withdraw denominations of Rs 500 and Rs 1000 from circulation, Union Minister for Roads and Highways Nitin Gadkari had asked all the toll operators to stop collection at all toll plazas to enable smooth movement of traffic. Earlier, the deadline for toll exemption was November 14 which has been extended to November 18. This deadline extension is aimed at offering respite to the cash-strapped citizens, who are queuing up outside ATMs and banks to withdraw or exchange money.
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