Toll collections on highways are on the road to recovery, reaching 85 per cent of the pre-Covid-19 levels in July and if the trend continues the reduction in collections could be below 10 per cent in 2020-21, rating agency ICRA said on Monday.
It said there were encouraging trends in traffic in July and about 85 per cent of ICRA rated toll road projects have debt service reserve greater than or equal to one quarter of debt obligation and are resilient enough to absorb the Covid-19 induced revenue shock.
“Overall, the traffic in 4M FY2021 has rebounded quite well, which is encouraging. This is also corroborated by the e-way bills generated. This pace of recovery, if sustained, the overall reduction in toll collections for national highway projects could be less than 10% in FY2021,” ICRA said in a statement.
