NEW DELHI, April 22 -- The Centre is preparing a policy to compensate highway developers for potential revenue losses under a barrier-free tolling system, seeking to remove a key hurdle to rolling it out across public-private partnership (PPP) projects, two officials aware of the matter said.

The move targets a core concern with multi-lane free flow (MLFF) tolling: while the system allows vehicles to pass without stopping, private operators fear some traffic could go undetected, weakening toll collections. By offering a compensation framework, the government aims to underwrite that risk and maintain investor confidence as it shifts to the new system.

"While the system is expected to ease congestion and improve efficiency on national hig...