The Karnataka Public Works Department (PWD) has dismissed a proposed 7.5% toll increase by Nandi Infrastructure Corridor Enterprise (NICE) for the Bengaluru-Mysuru expressway, calling the move unauthorised due to missing government consent.
In an official notice dated July 8, 2023, PWD Deputy Secretary N Parvathi stated that NICE’s unilateral revision violated Article 6.4 of their framework agreement, which clearly requires prior approval before altering toll fees. The decision follows a wave of public grievances over steep tolls that have made commuting between Bengaluru and Mysuru increasingly costly, especially for car and motorcycle users.
Despite the PWD’s objections, NICE Managing Director Ashok Kheny defended the adjustment, arguing that the contract permits annual increases up to 10%. He contended the revised rates merely reflect delayed hikes from five years ago, adding, “We did not seek fresh approval since this pricing should have been enforced earlier.”
This clash isn’t the first dispute between NICE and the state government. In 2016, the PWD served NICE with a default notice for missing project milestones, and a related legal battle remains unresolved.
The standoff underscores persistent tensions over how the Bengaluru-Mysuru corridor is managed and whether tolls remain fair and affordable for regular commuters.