Centre tells Punjab to bear losses for toll plazas being shut

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The inability of the Punjab Government to deal with the protesters shutting down toll plazas on national highways (NHs) may cost it dear.A loss of Rs 1638.85 crore was reported in Punjab from October 2020-November 2024 due to the closure of the toll plazas by protestors... which the Centre has asked Punjab to bear.

In a letter to the state Chief Secretary, KAP Sinha, Secretary of Ministry of Road Transport and Highways, V Umashankar, has said “this has created a problem in that the National Highways Authority of India(NHAI) has to compensate the toll collection agencies for their losses which may be recoverable from the state, as the toll revenues accrue to the Consolidated Fund of India”. In simple terms, the Centre has asked the state to pay for the losses incurred due to the closure of toll plazas, mostly by the farmer unions in the state.

Meanwhile, the development has sent shockwaves in the state government. Finance minister Harpal Cheema told The Tribune that the toll plazas were closed due to farmers protesting against the Centre, and not against the state. “Why should the state government bear the loss? The Centre should compensate the loss incurred by the NHAI,” he said. Interestingly, the letter written to the state Chief Secretary reminds the state government that the NHAI has undertaken several works of national highways and expressways. "The development of national highways would also aid the state’s economy through the GST contribution accruing from the development”, thus making their case for seeking compensation for losses.

In this letter, a copy of which is with The Tribune, the Ministry of Road Transport and Highways has pointed out that a loss of Rs 1,348.77 crore was incurred between October 2020-December 2021 (during the year-long farmers’ protests); Rs 41.83 crore in years 2022-23; Rs 179.10 crore from January 2024-July 2024, and Rs 69.15 crore from October 2024-November 2024 has been caused to the Central exchequer. ‘…Recently, 24 toll plazas remained inoperative from October 17-November 13, 2024, and these toll plazas could be made operational only after the intervention of the Hon’ble High Court”, states the letter.

The state Chief Secretary has been asked to look into this important issue and direct the district administration in the affected area to ensure that no toll plaza “is forcibly closed or disrupted for the overall benefit of the Centre and state governments”.