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  • ICRA’s views on the impact of the Wholesale Price Index (WPI) on toll road projects

    Published on April 16, 2024

     By: Mr. Vinay Kumar G, Vice President & Sector Head – Corporate Ratings, ICRA Limited

    “The WPI inflation for March 2024 stood at a marginal 0.53% (against 1.41% in March 2023), translating into a mild toll rate increase of ~0.53% during FY2025 for projects linked to the March WPI. For those linked to 3% fixed rate plus 40% of the change in December WPI, the toll rate hike is expected to be 3.34% during FY2025. A modest toll rate revision may see a 5-8% growth in toll collections for FY2025, primarily supported by 4%-5% growth in traffic. Nevertheless, ICRA maintains a Stable outlook on the toll road assets, as steady traffic growth will support the coverage metrics for BOT toll road assets.”


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