Himachal: Inter-state toll barriers auctioned for Rs 228 crore amid steep rate hike

The State Taxes and Excise Department (STED) has auctioned inter-state toll barriers across Himachal Pradesh for Rs 228 crore for the upcoming fiscal, registering a significant increase of Rs 43 crore over the reserve price of Rs 185 crore.The auction witnessed aggressive bidding by existing toll lessees, particularly at major entry points such as Baddi and Parwanoo. The competitive bids resulted in an overall 23 per cent higher revenue for the department compared to the base price.Among the most prominent toll units, the Parwanoo barrier generated Rs 35.16 crore during the auction held late last evening, considerably higher than its reserve price of Rs 22.48 crore. Similarly, key inter-state barriers at Baddi and Dheerowal were auctioned at rates about 34 per cent above the reserve price, according to officials in the STED.The toll units put up for auction are located in the districts of Shimla, Solan, Sirmaur, Bilaspur, Una and Kangra, which serve as important entry routes for vehicles entering the hill state.The auctions come amid a steep increase in toll rates across various vehicle categories, which will come into effect from April 1. As per the revised rates, passenger vehicles with a seating capacity of 12+1 will now pay Rs 170, up from Rs 110 earlier. A 32-seater mini bus will be charged Rs 320 compared to Rs 180 previously. Commercial vehicles will now pay Rs 600 instead of Rs 320.Similarly, large goods vehicles will be required to pay Rs 900 as toll, up from Rs 720 earlier. Tractor toll has also been increased by Rs 30, while construction machinery will now be charged Rs 800, an increase of Rs 130 from the earlier rate of Rs 570.An assessment of the revised fee structure shows that toll charges have been increased by an average of nearly 70 per cent across categories. However, the base auction price was raised by only about 10 per cent compared to the previous year.In the 2025–26 financial year, the department had earned Rs 173.89 crore from these barriers. With toll rates rising sharply, some officials believe the reserve price for the new auctions could have been set higher to maximise revenue.Officials in the STED acknowledged that the base price was relatively low but pointed out that the strong bidding, with several lessees securing contracts at more than Rs 10 crore above the reserve price, indicated that contractors had made substantial profits both in the previous fiscal and were expecting similar gains in the coming year.Some officials, requesting anonymity, said at a time when the state is facing financial constraints, the reserve price ideally should have been proportionate to the increase in toll rates.

Himachal: Inter-state toll barriers auctioned for Rs 228 crore amid steep rate hike

Aggressive bidding by existing contractors pushes revenue 23% above reserve price despite modest base price increase

Tribune News Service

Himachal: Inter-state toll barriers auctioned for Rs 228 crore amid steep rate hike

Aggressive bidding by existing contractors pushes revenue 23% above reserve price despite modest base price increase

Tribune News Service

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