Centre Asks Punjab to Bear ₹1,638 Crore Loss from Toll Plaza Shutdowns
The Union Ministry of Road Transport and Highways has informed the Punjab government that it must compensate for the financial losses incurred due to prolonged closures of toll plazas on national highways across the state. The shutdowns, primarily caused by farmer protests between October 2020 and November 2024, have led to a cumulative loss of ₹1,638.85 crore.
The National Highways Authority of India (NHAI) has been compensating toll collection contractors for the revenue shortfall during the protest period. Now, the Centre maintains that since toll revenue contributes to the Consolidated Fund of India, the Punjab government is liable to repay the amount reimbursed by the NHAI to the affected agencies.
Punjab Finance Minister Harpal Singh Cheema has strongly opposed the Centre’s position, arguing that the protests were a direct response to policies implemented by the Union government, not the state. He asserted that the financial responsibility lies with the Centre, and Punjab should not be penalized for protests driven by national legislation that affected farmers across the country.
The Centre’s communication also noted that as many as 24 toll plazas remained non-operational between October 17 and November 13, 2024. These were reopened only after High Court intervention. The Ministry has urged the Punjab government to ensure that such disruptions are not repeated in the future, citing the essential role of toll collections in funding highway infrastructure and maintenance.
The issue has added another layer to the strained relationship between the Punjab government and the Centre, particularly over farmers’ rights and federal responsibilities. The standoff raises key questions about who bears the cost of public dissent and the balance of fiscal accountability during mass protests.
