Karnataka PWD rejects NICE’s 7.5% toll hike on Bengaluru-Mysuru expressway

The Karnataka Public Works Department (PWD) has officially turned down a 7.5% toll hike proposed by Nandi Infrastructure Corridor Enterprise (NICE) for the Bengaluru-Mysuru expressway. The department deemed the increase invalid, pointing out that the toll revision was carried out without the mandatory approval from the state government.

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In a notice dated July 8, 2023, the PWD clarified that NICE’s move violates the terms outlined in their agreement, particularly Article 6.4, which requires prior government consent before making any toll adjustments. The rejection follows a surge in public complaints, with motorists raising concerns about the route becoming increasingly unaffordable, especially for car and two-wheeler users.

Despite this, NICE Managing Director Ashok Kheny defended the hike. He claimed the contract allows for annual increases of up to 10% and argued that the current toll reflects overdue revisions that were not enforced five years ago. According to Kheny, seeking new permission wasn’t necessary because the rates had already been delayed beyond their original schedule.

This disagreement is the latest chapter in a long-standing friction between NICE and the Karnataka government. The project has previously been marred by allegations of delays and non-compliance, including a default notice issued by the PWD in 2016. A legal case related to these concerns remains unresolved.