ICRA
According to ICRA Ratings, the toll road projects will benefit from the high wholesale price index (WPI) inflation as it will lead to an increase in toll rates and thereby collections. Toll rates and traffic volumes are the two variables which determines toll collections. The toll rate increase is linked to the WPI while the traffic volume is linked to underlying economic activity, primarily manufacturing, construction, and mining. For the projects that were bid post 2008, toll rate is revised annually in April at 3% fixed rate plus 40% of the change in WPI for December. Hike in toll rates for the projects bid prior to 2008 is 100% linked to the March WPI (toll rate revision happens in July or September each year).

Vinay Kumar G, Sector Head, Corporate Ratings, ICRA, says, “The WPI for December 2021 is expected to be around 13.0% (as against 2.0% in December 2020) translating into toll rate increase of ~8.2% during FY2023 for the projects which are linked to 3% fixed rate plus 40% of the change in WPI. For projects awarded prior to 2008, ICRA expects March WPI to be around 9.3%. In both the cases, decadal high toll rate revision is expected to result in 14-15% growth in toll collections for FY2023 on the back of 5%-6% traffic growth. The healthy growth in toll collections far outweigh the increase in maintenance costs resulting in a good improvement in cumulative DSCR numbers for BOT toll road assets which otherwise got moderated to an extent due to Covid impact. This is factoring in the assumption that impact of future Covid waves (if any) to be low.”
The National Highways Authority of India (NHAI) has started construction work on the 457-km long Vijayawada-Nagpur Express Highway. The ₹14,000 crore Greenfield-Brownfield Express Highway will connect Vidarbha in Maharashtra and

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The Centre and the Tamil Nadu government have come together to build a 20.6-km long double-layered elevated road in Chennai, connecting Madhuravoyal in the city with the Chennai Port. A Memorandum of Understanding for the key expressway

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The AP government has earmarked ₹3,572.92 crore for construction of new roads and upgradation and restoration of existing roads across the state. As much as ₹2,500 crore will be spent on R&B roads and ₹1,072.92 crore on panchayat raj roads, said an official

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The Nashik unit of the National Highways Authority of India (NHAI) has initiated the process for widening and concretization of the Bhiwandi-Nashik stretch of the Mumbai-Agra national highway at an investment of ₹5,000 crore. The project will reduce

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NHAI has started construction work on the Pathankot-Mandi national highway, which directly connects Pathankot with Leh, Ladakh and other border areas. NHAI has already acquired land in 40 revenue divisions of Nurpur in which 27 upmohals

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The National Highways Authority of India has undertaken upgradation and improvement of National Highway- 4B (new NH-348,548) and State Highway-54 (new NH- 348A) at an investment of ₹3,500 crore, informed Union Transport Minister, Nitin Gadkari

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The Union transport ministry has cleared a 380-km long new road corridor connecting the two industrial hubs of Ghaziabad and Kanpur. Crisscrossing through nine west UP districts, the 380-km Greenfield Economic Corridor aims at reducing

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To ensure smooth commuting services in the Central, East and Southeast Delhi, the Public Works Department (PWD) in Delhi has planned to construct a three-lane flyover for vehicles travelling from ITO towards Ashram at the Sarai Kale Khan

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Uttar Pradesh government has announced the construction of a 19,000 km long road network across the state entailing an investment of ₹15,000 crore

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CSIR-Central Road Research Institute (CRRI) is engaged in research and development of various projects like roads, runways, bridges, structures, traffic and transportation planning, use of sustainable materials

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Tamil Nadu government has approved the redesigned ₹5,770-crore project to be funded by the NHAI through loans and contributions from Chennai port

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The National Highway Authority of India, in a joint venture with the Rajasthan government, has planned to build the transport corridor of the northern

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The Union Transport Ministry has expedited work on the Regional Ring Road (RRR) around Hyderabad as the northern part of the RRR has already been

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The Greater Hyderabad Municipal Corporation (GHMC) has planned to build 15 new roads as part of the Strategic Road Development Program

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The Union Transport Minister has committed to spending ₹3 lakh crore on the development of National Highways infrastructure of high standards

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City and Industrial Development Corporation (CIDCO) has decided to construct Kharghar Turbhe Link Road (KTLR) including a tunnel through the hills

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Union Road Transport and Highways Minister, Nitin Gadkari, has cleared the construction of an access-controlled expressway between Aurangabad

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Dilip Buildcon has bagged a road project in Jharkhand entailing an investment of ₹976 crore. The project involves the construction of a four-lane

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The National Highways Authority of India (NHAI) has initiated the groundwork for the construction of 115-km long Ghazipur-Manjhighat four-lane

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Himachal Pradesh government has inked a pact with National Highways Logistics Management Limited to provide connectivity to the masses living

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