Click it and Unblock the Notifications
While toll road operators are expected to have revenue increases of between 16 and 18% in the current year, toll prices on roads and national highways are all likely to be increased by an average of 5 to 10% in the coming fiscal year.
According to a study by research & rating firm Crisil, toll revenue growth would continue to be high in FY24 as well, but at a lower rate of 9-11% due to the above-average traffic increase. However, the toll increase will vary depending on a number of circumstances and will not be consistent across the nation.
As the National Highway Authority of India (NHAI) executes its toll price hike of up to 7% across India, traveling on national roads and Expressways is expected to become more expensive starting today, April 1, 2023. According to the National Highways Fee Rules from 2008, toll modification takes place every year.
For all sorts of cars using the nation's highways in 2022, toll rates will increase by up to 15%. Nowadays, the country's motorways collected an average of INR 2.19 in tolls each kilometre. The increase goes from INR 5 per day to INR 1,150 per month under the new NHAI regulation. One of India's busiest Expressways in India, the Mumbai-Pune, will see an increase in tolls of 18% starting on 1st April, according to a representative of the Maharashtra State Road Development Corporation.
According to the recently increased toll levies, private cars will now pay a toll of 320 rupees instead of the previous INR 270, and an extra 40 rupees will be paid at the Vashi toll naka upon entering Mumbai. Director of Crisil Ratings Anand Kulkarni stated that according to an analysis of 49 toll roads in 14 Indian states, the toll prices on national highways increased by almost 10.5% in FY23.
Their own estimations indicate that the toll rate increase for FY24 will be around 5%. Traffic growth is anticipated to slow to 4-6% in FY24, but it will still be better than the CAGR of 2-3% for the previous four years, which was observed through FY22. Real GDP growth, which is anticipated to fall to 6% in FY24 and 7% in FY23, is closely correlated with traffic growth.
Before toll prices are increased, several criteria are taken into consideration. In addition to its connection to the wholesale price index, PC Grover, director general of the National Highway Builders Federation, said that additional services offered by the toll collector, vehicle density, and political influence all play a significant role in determining changes in toll charges.
According to recent data, tolls on national highways were collected in FY 2022 totaling INR 33,881 crore, a 21% increase from FY 2021. Moreover, during 2018-19, toll prices increased nationwide by 32%.
