A welcome nudge — Maharashtra’s toll waiver for EVs on the Bandra–Worli Sea Link

The Maharashtra government’s decision to include the Bandra–Worli Sea Link in the list of roads exempting electric vehicles (EVs) from tolls is a small policy move that carries symbolic and practical weight. The announcement — part of the 2025 EV policy push — was reported by Pune Pulse (Maharashtra Extends Toll Waiver for Electric Vehicles to Bandra-Worli Sea Link) and signals a growing willingness to use road pricing as an instrument to accelerate cleaner mobility Maharashtra Extends Toll Waiver for Electric Vehicles to Bandra-Worli Sea Link.

I welcome the intent. But I also feel the urge to temper applause with a practical checklist: incentives without design can become giveaways, and good ideas can founder without data, sunset clauses and complementary investments.

Why this matters

• Signal effect: Toll-free access on a landmark urban artery like the Sea Link is a clear, visible nudge — it tells citizens that EVs are being encouraged not only on paper but on the road. That matters for perceptions and early-adopter momentum. Maharashtra Extends Toll Waiver for Electric Vehicles to Bandra-Worli Sea Link.
• Operating cost reduction: For daily commuters and fleet operators, even modest reductions in trip cost change the economics in favour of electric vehicles.
• Policy bundling: Tolls are an existing lever governments can use quickly; deploying it for EVs is pragmatic while larger reforms (charging networks, local manufacturing, grid readiness) catch up.

Where caution is needed

• Who benefits? If toll waivers apply equally to all EVs, wealthier owners of high-end electric SUVs receive the same subsidy as a middle-income commuter. That risks poor targeting and fiscal leakage.
• Revenue and maintenance: Toll receipts fund upkeep or concession payments. Waiving tolls needs a plan for replacing lost revenue or renegotiating concession terms so infrastructure quality isn’t compromised.
• Congestion and fairness: Removing a price signal may increase vehicle trips during peak times. The environmental gain could be partially offset by increased vehicle-kilometres if policies aren’t coupled with demand management.

Practical design recommendations (my checklist)

• Time-bound and data-driven: Make the waiver explicit about duration and re-evaluation points. Use real usage and fiscal data to decide renewals.
• Targeting and tiers: Consider differentiated concessions — greater relief for lower-emission small cars and commercial EVs (buses, taxis) and limited or phased relief for high-emission-equivalent luxury EVs.
• Compensate road funds: Ringfence alternative revenue (congestion pricing, dedicated EV levies, state transport budget adjustments) to ensure maintenance and to settle concession agreements fairly.
• Link with charging and access: Incentivise charging infrastructure on approaches and parking hubs; a toll waiver is far more effective if drivers can reliably charge near origins/destinations.
• Transparency & monitoring: Public dashboards showing lost toll revenue, EV traffic share, grid load implications and emissions saved will make the policy accountable.

I had flagged this earlier — and remain convinced

When Maharashtra proposed MITRA (a NITI Aayog-like body) I urged that state transformation plans explicitly include new technology, transport and EV policy as coordinated items — not afterthoughts Mitra: State’s Niti Aayog-like body to make Maha trillion-dollar economy. Seeing now a concrete step like this waiver feels like a partial validation: the strategic idea to include EV policy in a coherent transformation agenda was, and remains, important.

That earlier note was less about tolls per se and more about building institutions that can calibrate policies, monitor outcomes and correct course — exactly what a time-bound, data-led toll waiver would require.

Final thought

Policy gestures are valuable when they are visible and oriented toward an objective. This toll waiver is such a gesture — it can jump-start behaviour change. But I hope the gesture is followed quickly by the harder, less visible work: data collection, equitable targeting, investment in charging, and a clear plan to ensure highways and bridges remain well-maintained. If we pair the signal with systems and accountability, this nudge will be a meaningful step toward cleaner, smarter urban mobility.

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Regards,
Hemen Parekh