The inflation-linked toll rates of many road projects will see a moderate increase of 2 per cent to 5 per cent in the next fiscal year due to the falling wholesale price index, a report recently stated.  

The Rating Agency, ICRA, had revised down the outlook on the toll road sector for FY24, depicting the wholesale price inflation, which had fallen to 4.95 per cent.  

The wholesale price index (WPI) based inflation is expected to fall even further and is likely to settle ultimately at 2 per cent.  

The inflation-linked increase in toll rate will be lowered to 2 per cent to 5 per cent in FY24 when compared to the 8.7 per cent to 14.6 per cent hike in FY23. 

It is said that the revision mainly reflects the expected moderation in toll collection growth to 6 per cent to 9 per cent in FY24, compared to a stellar 17 per cent to 20 per cent growth in FY23.  

The number of road users or traffic volume and toll rates are the major factors that have affected toll collection in the country.