Delhi MCD Seeks ₹900 Crore Annually To Offset Toll Removal
The Municipal Corporation of Delhi (MCD) has asked the city government for annual financial support of ₹900 crore if toll collection at the Capital’s borders is discontinued, raising questions on how the city balances traffic efficiency, public finance, and environmental priorities.
The demand comes after a recent push by the Union road transport ministry to scrap toll booths at Delhi’s borders, citing their role in worsening congestion, causing delays, and wasting productive hours. While the removal of barriers could ease vehicle movement, it threatens one of the civic body’s most important sources of revenue.According to senior officials, the MCD has proposed two options to offset the loss: an annual grant from the government, adjusted for inflation, or an increase in transfer duty on property transactions within Delhi. In a formal letter to the urban development department, the corporation underscored that compensation is essential if toll tax, charged under the Delhi Municipal Corporation Act of 1957, is discontinued.
Currently, toll tax applies to commercial vehicles entering Delhi, while an additional Environment Compensation Charge (ECC) is levied in line with Supreme Court directives to curb air pollution. The ECC, introduced in 2015, is designed not only as a revenue stream but also as a behavioural tool to discourage the entry of polluting trucks and promote investments in cleaner transport alternatives.The challenge, officials argue, is that traffic jams remain common at toll plazas such as Ghazipur, Rajokri, Badarpur, and Kalindi Kunj, with more than 85% of traffic flowing through just 13 entry points. Although electronic payment was made mandatory in 2019, the ECC still requires physical verification of goods, keeping congestion alive despite technological upgrades.Policy experts note that the removal of tolls could bring immediate relief to daily commuters and lower vehicular emissions from idling engines at barriers. However, without a clear substitute for lost revenue, Delhi risks undermining essential municipal services and environmental projects funded through toll and ECC collections.
The debate reflects a broader tension in urban governance between improving mobility and maintaining financial sustainability. For a city battling toxic air, traffic gridlock, and the pressure of rapid growth, transport reforms must be tied to sustainable finance and equitable solutions.While the Delhi government has yet to respond to the proposal, the issue is expected to dominate civic-policy discussions in the coming months. Officials maintain that any final decision must weigh both commuter convenience and the financial viability of eco-friendly urban infrastructure. For Delhi, a city striving for cleaner, greener mobility, the resolution of this debate could reshape how public revenue and urban sustainability intersect.
