NMC seeks toll tax exemption for city buses, cites Rs1.27 crore annual burden
Nagpur Municipal Corporation
(NMC) has urged the Maharashtra State Road Development Corporation (MSRDC) to exempt its city buses from toll tax, citing a heavy financial burden of over Rs1.27 crore per year.
A formal request was made to the chief engineer of MSRDC's toll administration department in Bandra, referencing a Dec 2023 govt notification that granted a similar exemption to Maharashtra State Transport (MSRTC) buses.
Municipal commissioner Abhijeet Chaudhari, in a letter to the MSRDC's toll tax department, cited that the city's bus service operates within a 20-kilometre radius, covering both urban and peri-urban areas. Within this operational zone, seven toll plazas fall under the daily route of the buses. On weekdays (Monday to Friday), NMC pays around Rs37,163 per day as toll. The daily toll costs on weekends are Rs32,166 on Saturdays and Rs28,116 on Sundays. This translates to a monthly toll expenditure of approximately Rs10.58 lakh and a staggering annual amount of Rs1.27 crore.
The appeal comes at a time when public criticism is mounting over the civic body's delayed response to the disruption of bus services on seven mofussil routes. Since Apr 1, over 500 Aapli Bus trips were slashed, affecting nearly 25,000 daily commuters — mainly college students. The problem arose after the National Highways Authority of India (NHAI) implemented a FASTag-only toll policy. NMC failed to equip its buses in time, leading to double toll charges and tripled operational costs. Although most students hold valid passes, they were forced to rely on costly and unsafe alternative transport.
by Taboola
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To address the issue, NMC is now working with the toll tax department to integrate a FASTag-based monthly pass system. On Thursday, NMC resumed partial operations with 94 buses, paying Rs5,250 per bus per day. The toll tax department has agreed to offer a flat monthly pass of Rs10.58 lakh for unlimited trips of NMC's fleet crossing the seven toll booths.
However, officials explained that the toll department follows a strict monthly calendar, not a day-to-day basis. As a result, NMC has decided to fully resume operations only from May 1, to avoid paying the full monthly toll fee for just six remaining days in April.
The NMC reiterated that its city buses serve as a crucial lifeline connecting Nagpur to nearby villages and settlements, offering subsidised travel for students, senior citizens, and vulnerable groups. Given the rising operational costs and public inconvenience, the civic body has sought the same toll exemption already granted to state-run MSRTC buses.
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