Scheme Guidelines for Inclusion of State/City Toll Plazas under National Electronic Toll Collection (NETC) Programme INDIAN HIGHWAYS MANAGEMENT COMPANY LTD. (A company promoted by NHAI) (AIS IHMC JANUARY 2019Scheme Guidelines for Inclusion of State/City Toll Plazas under National Electronic Toll Collection (NETC) Programme 4. Background 14. Indian Highways Management Company Lid. (IMCL) has been mandated to implement interoperable ETC system in the country by NHAI. The major components of ETC project, are ETC systems at all the toll plazas and Central Clearing House (CCH) for settlement of financial transactions between toll users and plaza operators. 12. FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepald or savings account linked to it. Its affixed on the windscreen of vehicle and enables user to drive through toll plazas, without Stopping for cash transactions. The tag can be purchased from Tag issuer banks/POS agents designated by IHMCL and can be recharged as per requirement of the user. As er rules, fixing FAST.ag is mandatory for all Categories M and N manufactured, or sold, Post 1st December 2017. The devices are also mapped with a particular vehicle and owner, 1.3, Currently the National Electronic Toll Collection Program (NETC) Is offered across more than 450 toll plazas along National Highways across the country. To further enhance Programs’ coverage and to offer seamless services to consumers across the country, 'HMCL can tie-up with state authorities and special purpose vehicle to enable them to be @ part of the program. The move offers participating agencies shorter tumaround time by allowing them to work within the robust FASTag solution architecture that already supports 3.8 million FASTags with dally average transaction worth Rs. 17.6 Cr as on date. 2 Key Objectives of the Scheme Key Objectives of On-boarding of Toll Plazas with State Authority/SPV are as below: + Implementation of unified & interoperable ETC system for National Highways as well as State Highways in India to faciitate seamless movement by offering ETC services across all tolled roads in India, + Interoperable ETC system to offer the convenience of electronically paying toll at any tol collection point through a single ETC account and a single On-Board Unit (FASTag) 2 ‘Scope and Coverage The Scheme shall be applicable to all toll plazas under State Authorities/departments and SPVs designated by States/City governments in India subject to availability of funds,4 Duration of the Scheme The scheme shall be co-terminus with FY 2019-20, 6. Admissible Components Financial assistance under the scheme shall be released for the following components 62. 6.3, 64. 65, CAPEX cost for ETC infrastructure installation Programme management fees for ETC, excluding acquiring fees component. Approach State Authority/SPV shall submit a proposal to IHMCL. expressing interest to include state/SPV toll plazas under National Electronic Toll Collection (NETC) Programme along with the estimated cost of ETC Infrastructure installation cost including Operations & Maintenance Cost for a period of at least 2 years. 'HMCL shall share guidelines/documents of the NETC programme as below: © ETC Infrastructure requiretnent specications al Toll Plazas ‘© Procedural Guidelines for NETC programme, as amended from time to time, © Programme related technical documents such as Interface Control Document (ICD), Tag specifications guidelines etc. as amended from time to time © Empanelied list of System Integrators for ETC infrastructure implementation, discovered unit rates of ETC equipment, etc for reference, ‘State Authority/SPV shall be responsible for installation of ETC infrastructure as per requirements under NETC programme. The overall operation and maintenance of ETC infrastructure shall be the responsibility of the State Authority/SPV, A Memorandum of Understanding (MoU) shall be signed between State Authority/SPV ‘nd IHMCL, with consensus on the ETC Infrastructure cost sharing model and the Programme Management fee sharing model between various stakeholders involved in ‘acquiring electronic toll, issuance of FASTag, and Settlement and Clearance of electronic toll collected. The % of Programme Management Fees shall be based on the Electronic Toll collected. The break-up of processing fees amongst various stakeholders such as Acquiring Entity, Issuing Entities, NPCI and IHMCL is provided in this subsequent section of the Scheme Page 266. 67. 68. 6.9. 7A 72, 8.2, Guidelines, The programme management fees are subject to revision by |HMCL from time to time. State Authority'SPV shall be responsible to select Acquirer Enity certified by NPCI for acquiring the electronic transactions taking place at State/SPV Toll Plazas. The cost of acquiring fees shall be borne by the State Authority/SPV. 'HMCL shall be responsible for arrangement for issuance of FASTag through various ‘issuing entities and engaging NCPI for providing clearing and settlement services. NPCI shall make necessary changes in the NETC. ‘system for on-boarding of state/city Toll Plazas as per requirement of IHMCL. States may engage empanelied System integrators by IHMCL for speedy implementation through tendering process. Criteria for Submission of Proposals ‘The following are the requirements to be ensuted while forwarding the proposal(s) for consideration under the Scheme: - The proposal should include the following components, but not limited, © Total project scope - no. of toll plazas, plaza details © Detailed financial estimates of ETC infrastructure to be installed along with break up of CAPEX cost and O&M cost for at least 2 years © Plaza-wise revenue data on total toll collected in the last 3 years The proposal shall outline the share of the ETC infrastructure cost to be borne by the State and |HMCL It is be noted that the cost of acquiring fees for transaction at toll plazas shall be borne by the State Authority/SPV. On-boarding Process of State/City Toll Plazas. ‘On acceptance of the Proposal by IHMCL, an MoU shall be signed between State Authority/SPV and IHMCL, with consensus on the ETC Infrastructure cost sharing model and the Programme Management fee sharing model between various stakeholders involved in acquiring electronic toll, issuance of FASTag, and Settlement and Clearance of electronic toll collected. ‘Subsequent to the MoU, a contract agreement shall also be signed between State Authority and IHMCL covering the details of the toll plazas to be covered and other standard programme guidelines Page 383, 84, 85. 9.2, ‘The ETC system deployed at the toll plazas should comply with the standard requirement ‘Specifications as issued by IHMCL and NHAI Acquiring entity engaged by the State authorily shall be certified in line with the NETC Programme requirements, ‘On successful testing of the ETC system at the toll plazas, [MCL shall intimate NPC! for on-boarding of the state toll plaza and generation of plazas codes In NETC system. The Process for on-boarding of the toll plazas shall be in line with the standard NETC programme, Broad Roles and Responsibilities Broad Roles of IHMCL/NHAI ‘Sign an MoU with State Authority/SPV for on-boarding of State/SPV Toll Plazas under NETC programme ~ Specify the Design, Standard and Specifications of FASTag as per MoRTH directives: Empanelment of FASTag manufacturers/supplier Policy decisions pertaining to NEC Programm, Modification in the Scheme Guidelines as per programme requirements fram time to time. Provide financial support to State Authority/SPV as per Scheme Guidelines. Broad Roles of State Authority/SPV ‘Sign an MoU with |HMCL for on-boarding of State/SPV Toll Plazas Selection of Acquiring entity for state/SPV toll Plazas for acquiring electronic toll transactions at toll lanes. Bear the cost of programme management fees as defined in the guidelines. Ensure installation of requisite ETC infrastructure at Toll Plazas ‘Arrange for requisite fund for installation of ETC infrastructure and payment of acquiring entity(ies) at Toll Plazas as per guidelines set in the guidelines. intimate IHMCL and NPC! on changes in Toll rules, tariffs etc.as and when applicable Requisite support and action for dispute resolution and grievance redressal for all disputes. pertaining to state toll plazas Page 49.4. 10. 10. 4 Broad Roles of NPC| Carry out the roles and responsibilties as defined in the NETC Procedural Guldelines as applicable and as amended from time to time in consultation with |HMCL. Ensure Clearing & Settlement for all transactions at state toll plazas Certification of member banks in consultation with IMCL. Maintain and make necessary improvement in the NETG switch and Mapper as per programme requirement Prepare the MIS of electronic toll transactions at Toll Plazas and share reports to State Authority/SPV and IMCL on a periodic basis as per requirement Suggest necessary improvement in the Procedural Guidelines and other technical documents Co-ordinate with concerned banks and faciltate dispute resolution for all disputes Pertaining to state toll plazas Broad Roles of Acquirer/issuing Entities Carry out the roles and responsibilities as defined in the NETC Procedural Guidelines as applicable and as amended from time to time Process the transaction processed at the newly appended toll plazas as per existing processes Financial Assistance from IHMCL Financial Assistance for ETC Infrastructure installation |HMCL shall provide financial assistance to the State Authority/SPV for Installation of requisite ETC infrastructure at the State/SPV toll plazas for 2 dedicated lanes (one in each direction) at each toll plaza. The financial assistance from IHMCL. shall be in the form of reimbursement of cost of installing ETC infrastructure. Subject to the approval of the Proposal from State Authority/SPV by the Competent Authority, IHMCL shall bear 50% of the CAPEX cost of ETC infrastructure installation at toll plazas, subject to a maximum capping of Rs. 20 lakhs per toll plaza for at most 2 dedicated lanes (one in each direction) State Authority/SPV shall bear at least 60% of the CAPEX cost of installation of ETC infrastructure and the Operation and Maintenance (O&M) cost of the ETC infrastructure atthe toll plazas, Page 510.2. Financial Assistance for Programme Management Fees * Except for the processing fees for Acquiring Entity, all other components of the Programme Management Fees such as Issuance Fees, Clearance & Settlement fees etc. ‘hall be borne by IHMCL up to 31 March 2020. Thereafter, the support may be extended as per discretion of IHMCL. * The cost of acquiring fees for transaction at toll plazas shall be bome by the State Authority/SPV. 11. Release of Financial Assistance ‘The financial assistance for ETC infrastructure installation shall be released as reimbursement to the designated State Authorities/SPVs on completion of ETC infrastructure installation at all ‘dentified toll plazas and the Go-Live of all Toll plazas under NETC Programme. ‘The financial assistance for the recurring programme management fees (excluding acquiring fees) shall be borne by IHMCL as per existing process under NETC programme. 12. Programmo Management Feus ‘The % of Programme Management Fees shall be based on the Electronic Toll collected. The detailed break-up of Programme Management Fees payable to various stakeholders is as follows: A ‘Acquirer Entity ~X* % : “schothe Mf eal he wots nee LAC Sats oa pee es ‘vary 66 pa rate acowery by Slate authorting by consialion’ with IMCL Important Note: L The above - mentioned % of Acquiring Entity under Head A shall be determined by respective state authority/SPV and Is subject to revision by State Authority/SPV from time Page 6{o time in consultation with IHMCL. The Overall Programme Management Fees Head G shall be derived accordingly. The above - mentioned % break-up of fees amongst various stakeholders under Head B. Such as Issuing Entity(ies), NPCI and any other fees as applicable shall be determined by IHMCL and is subject to revision by IHMCLINHAI from time to time. The Overall Programme Management Fees under Head G shall be derived accordingly. This Scheme guidelines document may be further detailed andlor amended as per requirement. List of Abbreviations CAPEX ; Capital Expenditure ETc Electronic Toll Collection IMCL Indian Highways Management Company Limited MoU Memorandum of Understanding NETC National Electronic Toll Collection NHAI National Highways Authority of india NPCI National Payments Corporation of India 08M Operations & Maintenance ‘SPV ‘Special Purpose Vehicle Page 7