TRANSPORTATION

FASTag-based toll collection up 20% in March, averages Rs 100 crore per day

FASTag-based toll collection on national highways rose more than 20 per cent in March to Rs 3,100 crore compared to Rs 2,560 crore in February, helping India’s highways development agency improve its financials and increase the pace of asset monetisation.

Toll collection through FASTag, which became mandatory effective February 15, 2021, averaged Rs 100 crore per day in March. It has plugged a large part of the toll leakage suspected in toll projects and has led to better data reporting, YES Securities (India) Ltd said in an April 5 note.

Traffic volumes in March posted over 22 per cent growth to reach 1.9 billion compared to February, led by increased penetration of FASTag and an improvement in economic activity, leading to higher freight movement.

Higher toll collection will have a cascading effect on prospects for the sector, YES Securities said.

The increase in toll collections would improve the financials of the National Highways Authority of India (NHAI). Of the highway projects under tolling, 25-30 per cent are NHAI tolled projects, in which the funds flow to NHAI.

Source
the hindu businessline
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