Growth of toll road traffic on the national highway forecast at 7-9% for the financial year 2022: crisis

A significant reduction in mobility in the second half of 2021-2022 will limit the growth of toll road traffic on national highways to a moderate level of 7-9% for the whole year despite a weak base of the prior fiscal year, Crisil Ratings said Monday.

He further stated that in the next fiscal year (2022-23), adequate traffic growth of 5-7% along with a significant increase in toll rates will increase the revenue of toll road operators.

According to Crisil, the rise in toll rates is linked to inflation based on the Wholesale Price Index (WPI), which remained high at more than 10% in the first 10 months of the 2021-22 financial year. .

As a result, toll rate hikes are expected of 8-10% over the next fiscal year, he said, adding that this, along with adequate balance sheet liquidity, will continue to support players’ credit profiles. .

Crisil Ratings director Anand Kulkarni said at 7-9%, toll road traffic growth on National Highways (NH) this fiscal year will be lower than the agency’s previous estimate of 10-12 %, considering the impact of prolonged monsoon and shortage of containers, which caused delays in the shipment of goods.

Additionally, he said passenger traffic, where the recovery was already fragile, was further affected by the third wave of COVID-19 led by Omicron.

(With PTI entries)

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Posted: Monday February 28th 2022, 6:03 PM IST

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