The upkeep of urban infrastructure

Creative financial solutions, such as charging fees for high-emission vehicles, can help alleviate toll burdens for city natives while keeping urban infrastructure viable

- AKHILESH TILOTIA

AS URBANISATION ACCELERATES across India, a striking trend has emerged: once-peripheral roads, originally designed to connect satellite cities, are now vital urban arteries. In many cases, these roads were financed through long-term tolls—typically spanning 25–30 years—to offset the initial construction costs. However, as cities like Delhi and Mumbai have expanded, tolls that once served as funding mechanisms have been phased out, raising a critical question: How to reconcile the interests of urban residents with those of private investors who bankroll such infrastructure projects?

The removal of tolls can ease the financial burden on daily commuters, but it poses a challenge to the economic viability of the roads themselves. Many of these infrastructure projects were designed with tolls as a key revenue stream, and eliminating them undermines the financial assumptions that underpinned their construction. This necessitates a careful recalibration of funding models—one that considers both public convenience and investor expectations.