Strong bounce back witnessed for India’s toll road assets, says ICRA

India’s toll roads are likely to witness a 14-15 per cent growth in collections in FY22, ratings agency ICRA said in a report.

Accordingly, this growth will be achieved on a low base following an estimated de-growth of 5-7 per cent in FY21.

“Road traffic has witnessed a marked improvement in H2 FY2021 after subdued traffic witnessed in the initial months, post resumption of tolling from April 20, 2020. This has been driven by increased movement of both – passenger and commercial vehicles, resulting in growth of around 10 per cent on a YoY basis.”

“Overall, in 9M FY2021, the traffic shrinkage witnessed is 4.6 per cent as compared of 13 per cent de-growth in Gross Value Added (GVA) of construction, mining and manufacturing.”