Thiruvananthapuram: The Kerala government has decided to implement toll collection on state highways managed by KIIFB (Kerala Infrastructure Investment Fund Board).

However, unlike national highways, state highways will not have traditional toll gates. Instead, specialized cameras will be set up, and an online system similar to FASTag will be used for toll collection.

KIIFB is now exploring toll collection on state highways as a new source of income. It is unclear whether this proposal will be included in the upcoming budget for additional revenue generation.

Move to generate alternate revenue

The Kerala government is seeking new avenues to generate revenue through toll collection on state highways managed by KIIFB. Toll fees will be introduced on state highways with an investment of ₹50 crore or more.

The move follows a similar model adopted by the National Highways Authority of India (NHAI). KIIFB has been funding large-scale projects through loans, and with the inclusion of these projects under the debt ceiling, the state government will need to invest its own funds. Government sources highlight that the legal framework for generating income from these projects is already in place.