Kalpasar Project Could Generate ₹1,525 Crore in Toll Revenue in First Year of Operations: Feasibility Report
May 31, 2026
Bhavnagar: Once completed, the long-awaited and ambitious Kalpasar Project is expected to become a major revenue generator for Gujarat. According to official projections, the project’s multimodal transport corridor is estimated to earn ₹1,525 crore in annual toll revenue during its first year of operation, which is expected in 2032.
As the project will provide a massive shortcut across the Gulf of Khambhat, the state government plans to recover a portion of the substantial savings enjoyed by commuters through a dedicated toll collection system.
According to the latest Pre-Feasibility Report (PFR), the projected toll revenue has been calculated under an optimistic traffic scenario. The corridor is expected to handle 18,062 vehicles per day in 2032, with traffic volume projected to rise steadily to 88,365 vehicles per day by 2101.
This increase in traffic is expected to significantly boost earnings, with annual toll revenue projected to reach a staggering ₹45,704 crore by 2101.
The proposed toll rates for the 60.13-km road link have been structured according to vehicle categories:
- Cars: ₹860
- Buses: ₹2,175
- Mini Buses: ₹355
- Light Commercial Vehicles (LCVs): ₹1,015
- 3-Axle Trucks: ₹2,250
- Multi-Axle Vehicles (MAVs): ₹2,725
Why the Tolls Are Being Proposed
The rationale behind these seemingly high toll charges lies in the substantial economic benefits expected for users. The Kalpasar Project will reduce the travel distance between Bhavnagar and South Gujarat (Surat/Mumbai) from 240 km to just 60 km, creating a 180-km shortcut.
The shorter route is expected to provide multiple benefits to commuters and transport operators, including:
- Significant savings in fuel and vehicle maintenance costs through reduced Vehicle Operating Costs (VOC).
- Considerable reduction in travel time and congestion.
- Lower greenhouse gas emissions, enabling the project to generate additional revenue through carbon credits.
Connecting Gujarat’s “Golden Triangle”
Beyond direct toll revenue, the project is expected to facilitate the development of a “Golden Triangle” connecting Bharuch, Bhavnagar and Ahmedabad. Improved connectivity is expected to enhance the utility of major growth centres such as Dholera and Dahej, while boosting the socio-economic development of the Saurashtra region.
The project, which is currently being monitored by the Prime Minister’s Office (PMO), aims to provide high-quality transportation infrastructure supported by a long-term self-sustaining revenue model.
In the latest development, the Gujarat government has applied for environmental clearance for the project, marking another step forward in the implementation of one of the state’s most ambitious infrastructure initiatives. DeshGujarat
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