The National Highways Authority of India’s (NHAI) decision to extend concession period for toll road operators to compensate for toll revenue loss during the lockdown is unlikely to provide adequate relief to the concessionaires, Icra said on Monday.
The Ministry of Road Transportation and Highways (MORTH) had suspended tolling on all national highways for a 25-day period between March 26, 2020 to April 19, 2020.
According to the rating agency, the extension of concession period by 3-6 months will not compensate for the loss incurred by concessionaires, who have a longer balance concession period (more than five years), during the period of lockdown.
