Government Role in Road Toll Collection: The Coimbatore Bypass Experience

G. Raghuram and Kheskani Deepa

No WP2002-09-07, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: India has the second largest road system in the world with a road length of 3.3 million kms. In the past 50 years, while the aggregate length of the roads has increased eightfold, the traffic has increased to almost twentyfold, resulting in congestion. To reduce the congestion and improve road quality, the central and state governments have focused on road development projects in the recent years. Public private partnerships have also been leveraged through the Build, Operate and Transfer (BOT) framework. This paper discusses various issues in toll based BOT projects, with the focus on a specific case study. L&T Transportation Infrastructure Limited, the BOT operator has been facing financial problems, experiencing a difficult time collecting tolls from the Athupalam Bridge segment of the Coimbatore Bypass project. Though the government has been trying to resolve the problem, it has not arrived at any positive solution as yet. This paper highlights the lessons from the Coimbatore Bypass experience for the future road BOT projects.

Date: 2002-09-07
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