In a bid to tackle the escalating traffic congestion in the capital, the Delhi government is moving forward with plans to introduce a congestion tax aimed at reducing vehicular movement during peak hours. According to Shahzad Alam, the special commissioner of transport, the government is developing a “congestion pricing” strategy, which will charge drivers for using designated roads when traffic is at its heaviest.
“New fund allocation is happening for managing the transport… What we are working on is called congestion pricing,” Alam stated in an interview with ETAuto. The initial phase of this initiative will target 13 key locations along Delhi’s borders, identified as critical points for congestion.
The idea of a congestion tax in Delhi is not entirely new; it echoes a proposal made in 2018 by then-Lt. Governor Anil Baijal. He suggested implementing charges for vehicles entering congested areas during peak hours, with the objective of alleviating traffic woes and reducing pollution levels. At that time, Baijal emphasized the need for expert consultations and public feedback before any policy rollout. Notably, 21 high-traffic zones were earmarked, including the ITO intersection and the Mehrauli-Gurgaon Road, as potential areas for the tax. Additionally, a parliamentary committee had recommended similar measures in 2017, highlighting the urgent need for action to manage congestion in the city.
The push for a congestion tax comes amid growing discussions in other Indian cities as well. Recently, Bengaluru authorities considered a congestion tax to alleviate traffic during rush hours on high-density roads. A report from Karnataka’s planning department, titled Karnataka’s Decade – Roadmap to $1 Trillion Economy, proposed using the existing FASTag system to levy charges on non-exempt vehicles entering the city during peak times. The generated revenue could then be allocated towards enhancing public transport, reducing pollution, and improving overall quality of life for residents.
Cities around the world, such as Singapore, London, and Stockholm, have successfully implemented similar congestion pricing models, demonstrating their effectiveness in managing traffic flow and reducing congestion. As Delhi grapples with its own traffic challenges, the proposed congestion tax may offer a viable solution to create a smoother, more efficient transportation network in the capital.








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