No NICE Road toll hike? Karnataka says company revised rates without approval

The department has formally issued a notice to Nandi Infrastructure Corridor Enterprises for revising toll charges without obtaining prior government approval.

The Karnataka Public Works Department (PWD) has taken serious exception to a recent toll hike on the NICE Road, calling it unauthorised and in violation of the state's agreement with the road operator, Indian Express reported.

The hike was part of a scheduled update under the concession agreement signed between NICE Ltd. (FILE)

The department has formally issued a notice to Nandi Infrastructure Corridor Enterprises (NICE) for revising toll charges without obtaining prior government approval, the report further added.

The toll rates on NICE’s peripheral and link roads were increased by around 7.5 per cent from July 1, making it one of the most expensive routes for private vehicle users in Bengaluru. The hike drew criticism from commuters, prompting the government to step in.

In a letter dated July 8, PWD Deputy Secretary N Parvathi stated that the revision was carried out without notifying the government, violating Article 6.4 of the framework agreement, which mandates that all toll revisions must first be cleared by the government.

“The tolls have been revised arbitrarily and unilaterally. The government does not approve of these rates,” said Amlan Aditya Biswas, Principal Secretary to the PWD. “Though NICE operates independently, it is bound by the agreement and cannot bypass the required process.”

NICE, however, defended the move. Its Managing Director, Ashok Kheny, argued that the toll hike is within the permissible limit of 10% annually, and claimed the current structure was due for implementation five years ago but had been delayed.

“We didn’t seek fresh permission because this structure was already due. Also, the hike is only 7.5 per cent, which is within the allowed range,” Kheny said, adding that the toll remains cheaper than other cemented highways and reflects NICE’s investments in land and construction.

This latest showdown is part of a longer history of friction between the Karnataka government and NICE. In 2016, the PWD issued a default notice to the company for failing to complete certain stretches of the corridor as per contract. A legal case related to that notice is still pending.

Despite the long-standing dispute, NICE had again sought a toll hike recently, which the government had rejected, citing the unresolved litigation and contractual defaults.

For now, the fate of the revised toll rates hangs in the balance, as commuters continue to bear the brunt of the hike on one of Bengaluru’s busiest privately operated roads.