Tolls to be collected on roads funded by KIIFB; cabinet approves legislation

THIRUVANANTHAPURAM: A recent report claims that the government is planning to collect tolls on roads constructed under the KIIFB (Kerala Infrastructure Investment Fund Board) project. Tolls will be collected on roads that have cost over Rs 50 crore to construct. The Cabinet has approved legislation related to this move. The government's decision is aimed at overcoming challenges in securing loans.

KIIFB's activities aimed at creating infrastructure by taking loans had faced setbacks after its debt was included in the state’s public debt. The government had approached the Supreme Court to address the reduction in loan limits. KIIFB's toll collection model will be similar to that of the National Highways Authority of India, where a fixed amount will be charged at each booth, irrespective of the distance travelled.

However, KIIFB roads will only charge tolls based on the distance travelled, and local residents will be exempt from paying tolls. Although the Cabinet has decided to draft legislation regarding toll collection, it is reported that this matter is being kept highly confidential. KIIFB has already begun studies on toll collection. A recent report by the Comptroller and Auditor General of India (CAG) stated that loans taken through KIIFB are part of the budget and contribute to the government's financial obligations.

Since KIIFB has no independent source of revenue, the government is required to allocate funds through the state budget to clear its debts each year. The CAG report, submitted to the legislative assembly, criticized this, suggesting that the government's explanation is insufficient. The government's move to collect tolls is seen as a measure to overcome issues related to loan acquisition. KIIFB officials have stated that further progress will be impossible without toll collection. Currently, fuel cess and half of the motor vehicle tax are being used to service KIIFB's debt.