Centre pegs toll plazas closure losses from 2020 to 2024 at ₹1,639-cr during farmers’ protests in Punjab

The frequent farmers’ protests in Punjab caused an aggregate loss of ₹1,638.85 crore to the central government due to the closure of toll plazas in the state in the past four years.

In a letter to chief secretary KAP Sinha last week, Union ministry of road transport and highways secretary V Umashankar called attention to the cumulative loss caused to the central exchequer by the frequent forced closures of toll plazas from October 2020 to November 2024 in the state.

“This has created a problem in that NHAI has to compensate the toll collection agencies for their losses which may be recoverable from the state, as the toll revenues accrue to the Consolidated Fund of India,” he wrote on April 4.

Ensure toll collection not stopped forcibly: Centre

The chief secretary has been requested to look into this matter and direct the district administration in the affected areas to ensure that no toll plaza is forcibly closed or disrupted for the overall benefit of the central and state governments. The farmer unions have been up in arms for nearly five years and repeatedly blocked roads and laid siege to toll plazas across the state to allow free passage to vehicles.

The farmers first held protests in various parts of the state in 2020 and 2021 against the now-repealed three agriculture marketing laws passed by the National Democratic Alliance-led central government, following them with more protests from time to time to press for better compensation for crop loss, smooth procurement, higher compensation for land acquisition, etc.

The latest dharnas under the banner of Samyukta Kisan Morcha (Non-Political) and Kisan Mazdoor Morcha (KMM) at the Shambhu and Khanauri borders in support of their demands, including a legal guarantee for minimum support price for crops, lasted 13 months. The protesters camping at the two sites were finally removed by the Punjab government in a late-night crackdown last month as discontent was building up among the business community and urban populace against such frequent road blockades and protests.

Benefits accrue to both central and state govts

Umashankar, in his letter, pointed out that as a result of frequent closure of toll plazas in the state, a loss of ₹1,348.77 crore from October 2020 to December 2021, ₹41.83 crore in 2022 and 2023, ₹179.10 crore from January 2024 to July 2024, and ₹69.15 crore from October 2024 to November 2024 was caused to the central exchequer.

He said that NHAI had undertaken several works of national highways and expressways in Punjab, which resulted in better connectivity, ease of travelling, industrial development and decongestion of urban areas. “The levy of user fees uniformly across the country is primarily to sustain the momentum in the development of national highways and expressways. Further, the development of National Highways would also aid the state’s economy through the GST contribution accruing from the development,” the union secretary wrote.

Earlier, the NHAI, the nodal agency for the development of national highway projects, had taken the decision to compensate the private highway developers for their toll revenue loss, acknowledging the farmers’ stir as an “indirect political force majeure (FM) event”.

A senior Punjab government official said the communication from the central ministry was related to seeking the state government’s assistance in preventing the forcible closure or disruption of toll plazas. The official, who wished to remain anonymous, clarified that there was no demand for any recovery or compensation from the state for this revenue loss.

Finance minister Harpal Singh Cheema also stated that all these protests were directed against the policies of the BJP-led central government. “They (central ministry) have not asked for any money from the state government. If they do, we will not pay them anything in this regard,” he said.