On June 4, 2024, the National Highways Authority of India (NHAI) announced a 5% average toll increase, effective from June 3, 2024. This hike, originally planned for April 1, was delayed due to the Lok Sabha elections. The annual toll adjustment is based on changes in the consumer price index (CPI)-based inflation.
India's national highway network includes approximately 855 toll plazas, with around 675 being publicly funded and the remaining 180 operated by concessionaires. These toll adjustments are governed by the National Highways Fee (Determination of Rates and Collection) Rules, 2008.
India Ratings and Research (Ind-Ra) projects that toll collection growth will likely moderate to 6-7% year-on-year in FY25, down from the 9-11% growth seen in FY24, due to a subdued wholesale price index. The increased use of FASTag, coupled with strong traffic growth and the expansion of tolling roads, led to revenue growth reaching Rs 64,800 crore in FY24, surpassing the government target of Rs 55,000 crore. Ind-Ra estimates that revenue will reach Rs 70,000 crore in FY25.
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