Toll collection to grow 10 pc in FY26
According to the government, toll fee collection on national highways was Rs 54,811.13 crore in FY24 and the fee rates were revised 2.55 per cent in the fiscal
Chennai: Toll collection in FY25 is expected to grow by a moderate 5-8 per cent. However, around 5 per cent toll rate growth will drive toll collection by 10 per cent in FY26.
According to ICRA, the toll rate growth is modest at 0.53-3.34 per cent in FY2025. When coupled with 4-5 per cent traffic growth, this is expected to result in 5-8 per cent toll collection growth in FY2025. Going forward, ICRA estimates a toll rate growth of 4.5-5 per cent in FY2026. Along with 4-5 per cent traffic growth, it is expected to result in 9-10 per cent toll collection growth in FY2026.
According to the government, toll fee collection on national highways was Rs 54,811.13 crore in FY24 and the fee rates were revised 2.55 per cent in the fiscal.
Further, road execution could moderate to 10,000-10,500 km in FY2025, after recording a robust expansion of 20 per cent in FY2024 to 12,349 km. ICRA has revised its full-year guidance downward from its earlier 12,000-12,500 km projection, against the backdrop of slower-than-expected execution during 4M FY2025. The execution is expected to be supported by a healthy pipeline of projects, and a strong budget outlay for road ministry. The capital allocation for the Ministry remained healthy at Rs. 2.72 lakh crore in FY2025.
In the case of road awards by the government also, ICRA has revised its forecast from 10,000 – 10,500 km to 8,500-9,000 km in FY2025, similar to 8,581 km in FY2024. The awards declined by 31 per cent in FY2024 amid delays in pending cabinet approval for the revised cost of the Bharatmala Pariyojana programme (BMP) and restrictions on project awards imposed by the model code of conduct ahead of the General Elections. Recently, the ministry clarified that no new additional projects would be awarded under BMP.