The Karnataka Public Works Department (PWD) has issued a notice to Nandi Infrastructure Corridor Enterprise (NICE) for revising toll charges on the Bengaluru-Mysuru Infrastructure Corridor Project without obtaining prior government approval.
NICE revised the toll rates by about 7.5 per cent on its peripheral and link roads from July 1, making it one of the most expensive stretches for motorists, particularly for cars and two-wheelers. However, the PWD has rejected the hike, stating it violates the agreement signed between the company and the government.
In a letter dated July 8, PWD Deputy Secretary N Parvathi informed the company that the toll revision is unacceptable as it was carried out without notifying the government, as required under Article 6.4 of the framework agreement. The agreement mandates that the company must obtain the government’s approval before revising toll charges, failing which the toll revision is deemed unauthorised.
Principal Secretary to the PWD, Amlan Aditya Biswas, confirming the notice issued to NICE said, “The tolls have been revised arbitrarily and unilaterally. The government does not approve of these rates. Notice is also served to NICE in the interest of the public who are complaining about the steep hike. Though NICE operates independently, it is bound by the framework agreement and cannot bypass it,” he said.
Defending the toll hike, NICE Managing Director Ashok Kheny maintained that the agreement permits the company to raise tolls by up to 10% annually. He said, “We did not seek fresh permission because this toll structure, which should have been implemented five years ago, is being enforced only now. Moreover, the hike is limited to 7.5%, which is well within the permissible limit.”
He also claimed that the toll rates on NICE Road remain lower than those on many other roads, despite it being a fully cemented stretch with land acquisition undertaken by the private firm itself.
The ongoing tussle also adds to the history of disputes between the government and NICE. In February 2016, the PWD had issued a default notice to NICE for failing to complete certain sections of the project as per technical specifications.
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A related legal case is still pending. Subsequently, the PWD had rejected NICE’s earlier request for a toll hike, citing the pending proceedings and default notice.