'New Covid wave may shave off 100 bps growth in toll collections in FY22'

The recent surge in Covid infections as well as subsequent localised lockdowns emanating from Omicron spread are likely to shave off around 100 bps of growth in toll collections in fiscal year 2021-22

The recent surge in fresh Covid infections as well as subsequent localised lockdowns emanating from Omicron spread are likely to shave off around 100 bps of growth in toll collections in fiscal year 2021-22, domestic rating agency ICRA on Wednesday said.

ICRA further said given that passenger vehicles (PV) category account for 20-25 per cent of overall traffic on toll projects, regional lockdowns imposed by state governments restricting people movement are expected to adversely impact the PV traffic as well as bus categories, as witnessed during the second wave of Covid-19.

The toll collections are, however, expected to be moderated by about 100 bps and will be supported by commercial vehicles as the manufacturing, construction activities and movement of goods are permitted, it added.

Giving more details, Vinay Kumar G, Sector Head, Corporate Ratings, ICRA, said the FastAG collections peaked at Rs 3,679 crore for December 2021, a growth of 12 per cent on a month-on-month basis as compared to November 2021.

He said restricted people movement owing to the third wave of pandemic is likely to affect the toll collections in the range of 7.5 per cent and 23.5 per cent on month-on-month basis in January and February 2022, respectively and recover thereafter.

He added that the recovery is expected to be quicker than what was observed during the second wave.