Rating agency ICRA on Tuesday said that toll road projects in the country are likely to see moderate to high single-digit growth in FY24 with moderation in the Wholesale Price Index (WPI) inflation.
India’s toll road projects saw a 17-20 per cent growth in FY23.
Toll rates and traffic volumes are the two variables that decide toll collections, the rating agency said in a statement.
The rise in toll rate 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, the toll rate is revised annually in April at three per cent fixed rate plus 40 per cent of the change in WPI for December.
