Revised toll on NICE road not approved by the government

Nandi Economic Corridor Enterprise Limited, the promoting agency of BMICP (Bangalore-Mysore Infrastructure Corridor Project), has revised the toll rates for Link road and Peripheral road users, however, the government did not approve it.

According to market news, the government did not permit NICE to collect revised toll rates from the commuters of Peripheral and Link road. However, the government ensured that the revision so implemented by NICE, should not violate the framework agreement of the firm.

NICE has sought to issue a notification stating the revised toll for 2012 and 2013, however, the State government has asked the promoting comprany to file a status report on building a concrete road in accordance to the original framework agreement. According to the agreement, the promoter should have built concrete roads, but due to the delay in the project the operator was approved to lay bituminous road on the condition that it would lay concrete road in the second phase. However, the promoters did keep their promise. The government further gave a conditional approval to build two-lane roads with bitumen roads under the condition that section A phase 1 and 2 must be converted into concrete.

However, according to market reports, NICE seeks approval to revise the toll stating that rather than constructing a concrete road, it has built 150 mm thick white topping on bitumen road.

Revised Toll Rate

NICE has proposed a hike in toll rate upto 10%, in accordance with its old rate. According to NICE, the revised toll rate would be:

                                                               Car(Rs)                    Two wheelers(Rs)

Bannerghatta – Kanakapura Road           26                                 10

Clover Leaf – Mysore Road                      15                                   6

Magadi Road – Tumkur Road                 28                                  11

Hosur – Bannerghatta Road                     33                                  13

Kanakapura – Clover Leaf                       17                                   7

Mysore Road – Magadi Road                 36                                  14

Link road                                                    38                                  16

Impact of the revised toll

The toll hike is expected to make the 41 km NICE corridor the most expensive road in the nation. According to the new rates, a trip by car on the 8.7 km peripheral road (connecting Hosur road and Bannerghata road) would cost Rs 33 and Rs 12 for a two-wheeler. Such an increase in rate will rank NICE above all the roads in India. An analogous hike in toll for buses, multi-axle vehicles and LCV’s will also be introduced at the earliest.

The revised rates of NICE are much higher than the normal standards adhered by the National Highways Authority of India. NHAI charges a toll of Rs 2- Rs 3 per km (depending earning per kilometre and cost of operation), which is much less compared to the new revised rate of NICE. For instance, the revised charge for using the NTBPL road from Bangalore to Nelamangala would be Rs 15 for 26.02 km, however, the charge for using the Hosur-Bannerghata road, the 8.744 km stretch will be Rs 30.
According to traffic and transport experts, the revised toll rates will make NICE road the costliest private road in the nation. Furthermore, the agreement of NICE with government states that they are authorized to revise the rates every year. This is likely to disappoint the commuters to a great extent.