Toll Collection on National Highways Set for Record High in FY26
The toll collection on India's national highways, a key indicator of economic activity, is projected to achieve a new record during the financial year 2025-26 (FY26). According to government data, the total toll collected from FY21 to December 2025 stands at Rs 2.78 lakh crore, marking a significant increase of approximately 120% over the last five years. This surge highlights the rapid growth in highway usage and infrastructure development across the country.
Pace of Collection Indicates Strong Growth
During the first three quarters of FY26, a user fee of Rs 50,345 crore was collected, which represents nearly 82% of the total toll collection in FY25, when Rs 61,408 crore was charged from vehicles. The Ministry of Road Transport and Highways (MoRTH) presented this data in Parliament, suggesting that toll revenues in FY26 are likely to surpass previous years' figures. In FY24, the total user fee collection was Rs 55,882 crore, while it stood at Rs 48,032 crore in FY23. For FY22 and FY21, toll collections were Rs 33,929 crore and Rs 27,927 crore, respectively.
Factors Driving the Increase
Nitin Gadkari, the Union Minister for Road Transport and Highways, attributed the rise in toll collection to several factors. These include the expansion of highway length under tolling, increased traffic volume on these stretches, and the category of vehicles using the highways. Additionally, the annual revision of user fees in accordance with the National Highways Fee (Determination of Rates and Collection) Rules, 2008, plays a crucial role. The implementation of digital tolling systems has also contributed significantly to efficiency and revenue growth.
Impact of Digital Tolling Systems
An Impact Assessment conducted for the National Electronic Toll Collection (NETC) Programme during 2024-25 revealed that the average time for a vehicle to cross a toll plaza under ETC operations was 40 seconds, compared to 12.23 minutes under the earlier manual system. This demonstrates a substantial improvement in traffic flow and a reduction in congestion. The government plans to further enhance toll collection by implementing multi-lane free flow (MLFF) tolling through automatic number plate recognition (ANPR) with AI analytics and RFID-based Electronic Toll Collection (FASTag), facilitating barrier-less tolling.
State-Wise Contribution to Toll Revenues
While state-wise data for FY26 is pending, an analysis of the past five years shows that five states have been the primary drivers of toll revenue growth: Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, and Tamil Nadu. Together, these states account for about 48% of the total toll collection.
- Rajasthan emerged as the top toll-collecting state, with collections rising from approximately Rs 3,330 crore in FY21 to Rs 6,289 crore in FY25, totaling Rs 24,310 crore cumulatively.
- Uttar Pradesh closely followed, with collections increasing from Rs 3,087 crore to Rs 6,574 crore during the same period, reaching nearly Rs 23,900 crore in total.
- Maharashtra recorded strong growth, more than doubling its toll revenues from Rs 2,591 crore in FY21 to about Rs 6,103 crore in FY25.
- Gujarat showed a similar upward trajectory, with collections rising from Rs 2,721 crore to Rs 5,450 crore.
- Tamil Nadu maintained consistent growth, with toll revenues increasing from Rs 2,333 crore to Rs 4,459 crore over the period.
These states benefit from dense highway networks that support high vehicle movement and industrial activity, further boosting toll collections.
Conclusion
The record-high toll collection in FY26 reflects the ongoing expansion and modernization of India's national highway infrastructure. With continued investments in digital tolling and highway development, toll revenues are expected to maintain their upward trajectory, contributing to economic growth and improved connectivity across the nation.
