Rating company Icra on Tuesday stated that top Wholesale Price Index (WPI) inflation is a blessing in disguise for toll road initiatives as toll collections are set to witness 14-15 per cent progress in 2022-23.
Hikes in toll charges are linked to the WPI whereas the site visitors quantity is linked to underlying financial exercise, primarily manufacturing, development, and mining.
Typically, toll charges and site visitors volumes are the 2 variables which decide toll collections.
Icra stated in a press release that it expects the toll road initiatives to profit from the excessive WPI inflation as it’ll result in a rise in toll charges and thereby collections.
It additionally famous that the wholesome progress in toll collections far outweigh the rise in upkeep prices.
WPI for December 2021 is predicted to be round 13 per cent as towards WPI of two per cent in December 2020, it stated.
(Only the headline and movie of this report might have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)
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