Toll Collections Likely To Rise 68 Pc In FY27 Due To Traffic Growth

(MENAFN- IANS) New Delhi, Feb 25 (IANS) Toll collections across national highways are expected to rise 6–8 per cent in FY27, supported by traffic growth despite lower inflation‐linked toll rate hikes, a report said on Wednesday.

The report from ratings agency ICRA said toll collections are expected to grow 7–9 per cent in FY26, supported by higher traffic growth of 4–5 per cent compared to 2.5 per cent in FY25.

Inflation‐linked toll rates are likely to rise around 3.3 per cent for newer projects linked to December Wholesale Price Index (WPI) inflation and 2.5–3 per cent for older projects linked to March WPI in FY27, the report further said.

“The toll collection in FY27 is expected to be impacted by muted rate hike, though traffic growth is likely to benefit from buoyant economic growth,” saud Suprio Banerjee, Co‐Group Head, Corporate Ratings, ICRA.

An ICRA study indicated that annual FASTag passes had a limited impact on toll collections. The annual FASTag related initial issues are also getting resolved with most developers getting payouts from the authority on a weekly basis, Banerjee added.

The expected resilience in toll revenues comes even as road construction under the Ministry of Road Transport and Highways (MoRTH) is projected to moderate, it noted.

Road awards by the MoRTH are projected at 7,250 –7,750 km in FY26, largely in line with 7,538 km awarded in FY25, the report added.

ICRA also noted that it takes about 6–9 months from project awarding to on-ground execution (first billing milestone), implying that the slowdown in awards is expected to keep execution levels moderated in the near term.

“Due to the increasing focus on building expressways or high-speed corridors, the road construction growth in terms of lane-km expansion will be relatively better,” Banerjee said.

-IANS

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