NEW DELHI (Reuters) – India on Monday placed on maintain a proposed hike in highway toll costs, in a transfer that can be welcomed by hundreds of thousands of motorists, truckers and industrial car house owners simply forward of a basic election.

The annual hike in highway toll costs would have benefited freeway operators like IRB Infrastructure Developers and Ashok Buildcon Ltd whereas placing an additional burden on commuters and companies who might see freight charges rise because of this.

“The revision of user fee (toll) rates with effect from April 1 has been put on hold after taking permission from the Election Commission,” a senior official at National Highways Authority of India advised Reuters.

India will maintain a basic election in seven phases from April 19 to early June. Prime Minister Narendra Modi and his regional allies are aiming for a cushty win in opposition to an alliance of two dozen opposition events.

Highway operators have already put notices in native newspapers about hikes in toll costs of three% to five% at practically 1,100 toll plazas from April 1. Toll costs are revised yearly in keeping with inflation.

Opposition events and commuters had criticised the proposed toll hikes as each tolls and gas costs have gone up considerably since Modi got here to workplace.

The authorities says hikes in toll costs and taxation on gas merchandise assist pay for the growth of nationwide highways.

Separately, the election fee additionally allowed the federal government to placed on maintain the proposed annual hike in electrical energy tariffs until the completion of the election course of, the federal government assertion stated.

India’s toll collections have jumped to greater than 540 billion rupees ($6.5 billion) within the 2022/23 fiscal 12 months from 252 billion in 2028/19, helped by an increase in highway site visitors in addition to by will increase within the variety of toll plazas and costs.

($1 = 83.3600 Indian rupees)

(Reporting by Manoj Kumar; Editing by Hugh Lawson)

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