Toll collections from highways for financial year 2019-20 are expected to be down by 2-3 per cent as against the previous fiscal, estimates rating agency ICRA.
This is due to three reasons — vehicles being allowed to carry more cargo due to higher axle norms, general slowdown in economy and, finally, the partial lockdown brought in by some States and the nationwide lockdown imposed by the Centre on March 25.
Toll collections for fiscal 2020-21 are expected to decline by 6.5-8 per cent against the previous year. The actual scenario will depend on how Covid-19 plays out during the year.
As per ICRA, GDP growth is estimated at 2 per cent for FY21. As far as toll road projects are concerned, the assumption is that entire April will be under toll suspension with gradual ramp-up over a three-month period between May and July, 2020, said Rajeshwar Burla, Vice-President, Corporate Ratings, ICRA, in a webinar on Thursday.
