Electronic toll collection on highways: NHAI signs pact

September 20, 2014

NHAI-promoted Indian Highways Management Company Limited (IHMCL) has inked a pact with Axis BankBSE 0.57 % for services related electronic toll collection, which the government plans to introduce pan-India.

Considering the complexities and geographical spread, the nationwide electronic toll collection (ETC) would be first of its kind in the whole world.

“IHMCL, a NHAI promoted company and Axis Bank has signed an agreement for provision of Central Clearing House (CCH) services and sale of FASTag, for Electronic Toll Collection (ETC) at the Toll Plazas on the National Highways,” an official statement said today.

It said ETC system on Delhi – Mumbai stretch of the national highways will be made operational by the end of this month and a nationwide rollout will be carried out by the end of year.

Earlier this year, IHMCL had signed agreement with ICICI Bank also and it has two banks now to perform clearing and settlement of electronic toll transaction, which is a key requirement for electronic toll collection.

This is subsequent to the initiative taken by the Ministry of Road Transport & Highways, NHAI and IHMCL for implementation of unified Electronic Toll Collection on Indian national highways.

Electronic Toll Collection enables road users to pay highway tolls electronically without stopping at the toll plazas.

“The unique number of the RFID FASTag affixed on the wind shield of the vehicle will be read by the readers fitted in the dedicated ‘ETC’ lanes of plazas and the toll will be deducted automatically,” the statement said adding this will help in reducing congestion at the toll plazas and enable seamless movement of vehicles on the national highways.

The Ministry has decided to roll out ETC programme in the country under the brand name “FASTag”.

The dedicated ETC lanes will have colour coding for distinct identity recognised as “FASTag lanes”.

ICICI Bank and Axis bank, engaged for providing CCH services, would distribute RFID based “FASTag” through their franchises/agents and at points of sales near the toll plazas

Road users can enrol and get “FASTag” affixed on their vehicles at designated toll plaza locations or Point of Sale (POS) stations of Axis bank and ICICI bank.

Such type of highway tag brands are common in developed countries and are known by different names like “Eazee Pass”, “SunPass” in the US, “e-Pass” in Australia, “Salik” in Dubai etc

Source:Economic Times

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Computerised toll plazas on all highways by April 2014

August 14, 2013

ENS Economic Bureau : New Delhi

Users of national highways in the country can expect a hassle-free passage across all toll plazas from April next year, as the road transport ministry has announced plans to implement electronic toll collection on all tolled national highways.

At a panel discussion on next-generation tolling and corridor management, organised by Feedback Infrastructure, road transport minister CP Joshi announced the deadline. “We have recently incorporated a company called Indian Highways Management Company Limited (IHMCL), for implementation of nation-wide electronic toll collection (ETC). The government of India is also amending the Central Motor Vehicle Rules, 1989, for fitment of RFID tag on vehicles by the automobile manufacturers,” Joshi said.

Joshi also added that implementation of ETC will not only make traveling convenient but will also have a lot of other benefits. “With the implementation of ETC, we will see a lot of changes happening in the way projects are bid. Computerisation of tolling will also give a clear and transparent picture on tolls,” he said.

Around 50 per cent of the firm will be owned by companies in the sector. Another 25 per cent will be owned by financial institutions and the rest will be owned by the National Highways Authority of India (NHAI). “We have given more representation to private players in the company. In fact, this is their company and the government’s job is only of a facilitator. Almost all large companies have shown interest in this venture…,” said JN Singh, chairman of IHMCL and member (finance) of NHAI. The company has a paid-up capital of Rs 30 crore, which will be enhanced in due course according to the requirement and will have eight members, including the chairman.

IHMCL will start the process by setting up a Central Clearing House (CCH) for nation-wide ETC interoperability and infrastructure for tag distribution. The company is in the process of inviting Request for Qualification (RFQ) for short listing agencies for implementing end-to-end Turn-key ETC on pan-India basis.

Maintenance firms to be under lens

Soon, companies responsible for maintaining tolling and operations of various stretches and toll plazas will be penalised in case services provided are not of a particular standard. The standards are mentioned in the agreements signed between the government and road developer or operations and maintenance contractor.

“There are various services standards mentioned in the agreements, which the company that maintains the toll plaza and stretch has to provide. In case of a company not being able to provide that quality of service, it will be penalised,” said J N Singh, chairman of Indian Highways Management Company Limited (IHMCL).

Source-http://m.indianexpress.com

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The ministry intends to set up a highway regulator this financial year: Oscar Fernandes

August 14, 2013

Sanjay Jog | Mumbai

Oscar Fernandes,

Union minister for road transport and highways

Oscar Fernandes took over as Union minister for road transport and highways at a time when the Centre is struggling to attract investments in the sector. After taking over during the reshuffle last month, Fernandes has his hands full. In an interview with Sanjay Jog, he explains a slew of initiatives being taken to give a much-needed push. Edited excerpts:

What are your plans to put the road sector on the fast track?
Formation of the roads and highways regulators, meeting the target of awarding projects of 9,638 km during 2013-14 and relaxation of norms for environment clearance are the issues under active consideration. Besides, the ministry is keen that the stretches requiring additional right of way (ROW) of 40 metres and length up to 100 km do not require environmental clearances. These issues are likely to be resolved shortly.The ministry’s efforts to resolve some other key issues have paid off. The Reserve Bank of India has issued guidelines that bank loans to concessionaires will be treated as secured loans. Stretches aggregating up to 4,000 km length will be taken up on EPC (engineering, procurement, construction) mode this year. National Project Monitors are being engaged for quality checks during implementation. Environmental and forest clearances are de-linked and obtaining the no-objection certificate from gram sabhas has been exempted. The Indian Highways Management Company Ltd has been formed for implementation of nation-wide electronic toll collection. The ministry has been delegated the financial power to sanction projects up to Rs 500 crore.

What is the completion target for this financial year and during the remaining period of the 12th Plan?Completion per km construction during 2011-12 was 13.73 km a day. It rose to 16.01 km/day during 2012-13. The target for 2013-14 is 17.34 km/day.

Progress on projects awarded is muted, especially due to the absence of necessary ROW, clearance and lack of financial closure. How are these issues being addressed?
According to the modified model concession agreement (MCA), it is to be ensured that 80 per cent of the total land is vested with the National Highways Authority of India (NHAI) at the time of appointed date. The ministry has taken a slew of initiatives to expedite land acquisition. The issue has been taken up with state governments for expediting the land acquisition matters. Regular meetings have been held at higher levels for speeding up the acquisition of land. High-powered committees under chief secretaries of state governments have been formed. Infrastructure and manpower resources to the Competent Authority for Land Acquisition in the respective states and Project Implementation Units of NHAI will be strengthened. In some of the states, special land acquisition units will be formed.

How will de-linking of environment and forest clearances come handy for speedy implementation?
Environment clearance is required for the entire stretch of the project highway, whereas forest clearance is needed for a particular stretch of the project highway where forest land is involved. Thus, forest clearance affects a small portion of the total project highway. De-linking of environment and forest clearances ensures speedy implementation of the project, as work can immediately start for the stretches that don’t require forest clearance. For the remaining stretches that need forest clearance, work may commence at a later time after obtaining the clearance.

Given the dismal performance of projects implemented under the build-operate-transfer (BOT) mode, what is the logic behind awarding projects on EPC and OMT (operate, maintain and transfer) basis?
One reason for the failure of the BOT mode during the past two years has been the absence of adequate market equity. Implementing EPC through budgetary support will boost the market equity, which will enable the market to rise again for making a favourable condition for taking projects on the BOT mode.

What efforts are being made to attract further investments, apart from the creation of infrastructure debt funds?
At present, the ministry’s focus is mainly on EPC projects to revive the industry. Besides, the ministry is making effort to remove all hurdles to pre-construction activities.

When will an independent regulator for the road sector be set up?
The ministry intends to set up a highway regulator within this financial year. Inter-ministerial consultation was held in March, which was followed by round table discussions with various stakeholders in association with the Confederation of Indian Industry in April. The task force has submitted its report in June. Bids for selection of consultants are under the ministry’s examination.

Source-http://www.business-standard.com

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