Bhutan vows to resolve toll fee issue along Indian highways within two months

Between 3,000 and 4,000 Bhutanese vehicles use the highways in Assam and West Bengal regularly, where they are charged tolls at multiple points, often twice for the same stretch, a member of parliament said.

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File photo of Bhutan's Minister of Foreign Affairs and External Trade DN Dhungyel. PHOTO PROVIDED BY KUENSEL

June 16, 2025

THIMPHU – The government has pledged to resolve the long-standing issue of double toll fee imposed on Bhutanese vehicles traveling through the Indian highways in Assam and West Bengal within the next two months.

This assurance was made by the Minister of Foreign Affairs and External Trade (MoFAET) DN Dhungyel during the National Assembly’s Question and Hour session yesterday while responding to concerns raised by Member of Parliament (MP) for Radhi–Sakteng, Tashi Tenzin.

“This issue is placing a financial burden on Bhutanese traders and transporters who frequently use Indian highways for cross-border travel,” MP Tashi Tenzin said.

He said that between 3,000 and 4,000 Bhutanese vehicles use the highways in Assam and West Bengal regularly, where they are charged tolls at multiple points, often twice for the same stretch.

“If a driver pays in Ngultrum, an additional 50 percent is charged,” he said. “Heavy vehicle drivers are paying up to Nu 4,000 just between Samdrupjongkhar and Phuentsholing.”

For truckers already grappling with loan repayments and rising fuel costs, the added toll burden, the MP said, could threaten livelihoods.

“This has been going on for months, and if unresolved, it could have serious consequences for businesses and even affect our foreign reserves,” MP Tashi Tenzin said.

In response, Lyonpo DN Dhungyel explained that MoFAET has conducted several rounds of consultation with Indian authorities, including the National Highways Authority of India (NHAI), the National Highway Management Corporation, the State Bank of India, and ICICI Bank.

He said that the core issue lies in the technology system used for toll collection in India. “Currently, only Indian-registered vehicles with Fastag accounts linked to Indian banks can access the system. Foreign vehicles, including those from Bhutan, are not permitted to participate,” he said.

To address the issue, Bhutan has proposed allowing Bhutanese vehicles to open Indian bank accounts for toll payments. “After several rounds of consultations with agencies within the country and the Indian authorities like the National Highways Authority of India agreed in principle to integrate Bhutanese vehicles into the toll system,” Lyonpo said.

He informed the House that the NHAI is preparing an “approach document”, which will outline the mechanism through which Bhutanese vehicles can formally participate in the Indian toll system. Once finalised, the document will be submitted to the Indian government for final approval.

“This process has taken time because of the technical coordination required between agencies in both countries and also due to national security considerations,” Lyonpo said. “We have had six rounds of consultation, but these things do not always move as fast as we wish.”

Despite the delays, the minister assured that both countries are committed to resolving the issue. “Agencies on both sides have agreed in principle. Now it is up to the two governments to give the final approval and conduct a trial run,” he said. “We are expecting that the matter will be resolved within the next two months.”

Transporters and exporters have long decried the toll charges as arbitrary and discriminatory.

Kuensel found that six-wheeler vehicles are charged INR 3,090, with half of the amount constituting a penalty for non-compliance with the FASTag rule along the Assam highway. Heavy vehicles like 10-wheelers end up paying more than Nu 8,000 in toll fees for a single trip.

Compounding the issue is Bhutanese drivers’ limited access to Indian rupees. The Royal Monetary Authority facilitates INR once a year, but for daily commuters, the shortfall adds to their growing operational costs.

Truckers and exporters who rely on these routes to transport goods fear that the escalating costs will undermine the sustainability of their operations.

“With every additional fee, it becomes increasingly difficult for drivers to manage expenses, repay loans, and sustain their businesses,” said an exporter. “This issue needs immediate attention.”

Many are now hopeful that this diplomatic engagement will yield a fair and workable solution soon, easing the financial burden on transporters and exporters and facilitating smoother cross border trade.

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