Highway toll revenue growth slows, may fall short of FY25 target
Subscribe to enjoy similar stories. India's highway toll collection growth is slowing and may fall short of the projected ₹70,000 crore in the current financial year, according to two persons aware of the development, mirroring the slowdown in the economy. While new highway alignments and a rise in the number of toll stations may take this income to around ₹60,000 crore in FY25, but the actual growth will ease to a single digit against more than 40% and 16% seen in FY23 and FY24, respectively, the first among the two persons quoted said on the condition of anonymity.
India targets to more than double the toll revenue to ₹1.3 trillion by 2030. Lower revenue reflects muted highway traffic growth, indicating cooling business activity. India Ratings and Research projects the aggregate toll road revenue growth to moderate to 5.5-6% in FY25 from 12% in the previous year.
The high-frequency indicator mirrors India’s gross domestic product (GDP) growth falling to the lowest in seven quarters at 5.4% in July-September. The slower pace of growth was evident in the first half of FY25. Toll revenue in Q1 and Q2 grew 3.8% and 4.8% on-year—the cumulative growth in the first half stood at 4.3% over a year earlier.
Also read | Why India's monster highway building plan is in the slow lane In the best-case scenario, collections may rise in the range of 6–8% in FY25, assuming that traffic growth maintains momentum and more plazas become operational, the second person quoted earlier said, also speaking on the condition of anonymity. Queries emailed to the ministry of road transport and highways, the administrative department for the National Highway Authority of India, remained unanswered till press time. But a ministry official, who didn’t
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