Context:

The Public Accounts Committee (PAC) of Parliament, led by K.C. Venugopal, has asked the government to review the toll tax rules for National Highways (NH) after concerns about outdated fee structures and maintenance issues raised during a recent meeting.

Key Issues:

1.   Toll Tax Structure and Revenue Increase: The existing toll tax system, governed by the NH Fee Rules, 2008, calculates toll charges based on a fixed rate per kilometer.

o    The PAC noted that with rising vehicular traffic, toll revenue has significantly increased. It suggested that toll fees should be reconsidered and potentially reduced, ensuring fair charges for commuters.

2.   Non-Compliance by Concessionaires: Concerns were raised regarding private operators (concessionaires) failing to meet their contractual obligations.

o    Issues include inadequate road maintenance, lack of proper facilities (such as rest stops and medical aid), and failure to manage high-risk accident-prone areas.

3.   Traffic Congestion at Toll Plazas: Despite the introduction of FASTags, long queues at toll plazas remain a major concern.

o    The PAC cited the Paliyekkara Toll Plaza as an example where concessionaires were not complying with agreements, causing inconvenience to commuters.

About the Public Accounts Committee (PAC):

• Formation:
  The PAC is formed under Rule 308 of the Rules of Procedure and Conduct of Business in the Lok Sabha.
• It consists of 22 members in total.
• 15 members are elected from the Lok Sabha, and up to 7 members are elected from the Rajya Sabha.
• Members are elected annually using proportional representation.
• Functions of the PAC:
• It examines the government's revenue and expenditure to ensure financial accountability.
• Reviews how the money granted by Parliament was spent by the government.
• Scrutinizes the annual Finance Accounts and the audit reports of the Comptroller and Auditor General (C&AG).
• Holds government officials accountable for the economy, efficiency, and effectiveness of public spending.
• Importance of the PAC:
• The PAC acts as a crucial check on government spending, ensuring that the funds allocated by Parliament are used properly and efficiently.
• It helps maintain transparency and accountability, particularly regarding the government’s financial activities.

Conclusion:

• The PAC has called for a review of the toll fee rules, emphasizing the need for lower toll rates due to increased revenue from more vehicles.
• It also urged stricter enforcement of contractual obligations by concessionaires and addressed concerns about privacy with new technologies for toll collection.