MCD Demands Rs 900 Crore Annually To Scrap Delhi Border Toll Booths After Nitin Gadkari's Appeal

The Municipal Corporation of Delhi has requested the Delhi government to provide Rs 900 crore annually as compensation if toll tax collection at the capital's border points is discontinued to ease traffic congestion, the Hindustan Times reported.

This comes after Union Minister Nitin Gadkari's appeal to remove the toll booths

The corporation proposed two alternatives to offset potential revenue loss: either an annual payment of Rs 900 crore with a 3-4 per cent inflation-linked increase yearly, or a 1 per cent hike in transfer duty on immovable property transactions in Delhi.

MCD officials said the proposal was sent to the urban development department through a letter from the additional commissioner.

The request follows Gadkari's June appeal to eliminate MCD-operated toll booths at city borders, citing traffic snarls, delays, and wasted man-hours.

The Union road transport and highways minister had highlighted these issues during a meeting referenced in MCD's correspondence.

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"The revenue from toll tax is a major source of income for the MCD. If toll booths are removed, the Delhi government should compensate us either through an annual grant or an increase in transfer duty," a senior MCD official said.

Traffic congestion frequently occurs at toll plazas, particularly at Ghazipur, Rajokri, Badarpur, and Kalindi Kunj.

Despite having 156 toll plazas across Delhi, more than 85 per cent of traffic enters through just 13 major points, creating bottlenecks.

Under the Delhi Municipal Corporation Act 1957, toll collection from commercial vehicles has been operating since 2000.

Additionally, the Supreme Court-mandated Environment Compensation Charge imposed in 2015 aims to discourage polluting vehicles and fund public transport improvements.

While RFID-based toll payment became mandatory in 2019, physical verification remains necessary for ECC as rates vary for empty vehicles versus those carrying essential goods.

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