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Home / Economy / Pan-India toll collections to exceed 25,000 cr in H1 FY23: Crisil

Pan-India toll collections to exceed 25,000 cr in H1 FY23: Crisil

It was passenger traffic that drove growth in April and May as consumers took to revenge travel during the vacation months after a host of restrictions in the past two years. (File Photo)Premium
It was passenger traffic that drove growth in April and May as consumers took to revenge travel during the vacation months after a host of restrictions in the past two years. (File Photo)

Toll collection is expected to remain relatively flat in September vis-à-vis the previous month. The likely withdrawal of monsoon during the month and the upcoming festival season augur well for growth in toll collection going ahead

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NEW DELHI: With mobility picking up across the country, vehicular traffic on highways saw a strong revival during April-August this fiscal, especially given the low base of previous year, rating agency Crisil said in a report on Thursday.

In addition, a healthy hike in toll rates because of elevated wholesale price index, resulted in a robust year-on-year growth of 50-55% in toll collections during the period, Crisil’s sector vector report for September said. By the end of the first half, pan-India toll collection is expected to touch 25,500 crore, the report said.

Sequentially though, toll collections grew at a more sedate pace in the wake of global supply chain disruptions due to geopolitical tensions and early onset of the monsoon, as per Crisil.

While commercial vehicles typically account for about 75% of pan-India toll collections, it was passenger traffic that drove growth in April and May as consumers took to revenge travel during the vacation months after a host of restrictions in the past two years.

Commercial traffic was relatively subdued during the first two months of the fiscal on account of relatively weaker demand. Inflated prices of key commodities, elevated fuel prices and lower production of key food grains such as wheat acted as headwinds, with trucks being the worst affected segment, the ratings agency report said.

This assessment was further corroborated by the monthly rail data that showed traffic from transportation-intensive sectors such as cement and steel witnessed a sharp contraction while that from coal, which is mostly transported by rail, remained largely flat relative to the levels observed in March.

After peaking in May, monthly toll collections tumbled on-month in June and July as monsoon arrived, impeding construction activities and restricting the ease of mobility. However, August saw a slight revival in toll collections as softening of commodity inflation led to an improvement in demand prospects, which in turn, translated into greater transportation of goods.

Toll collection is expected to remain relatively flat in September vis-à-vis the previous month. The likely withdrawal of monsoon during the month and the upcoming festival season augur well for growth in toll collection.

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