Maharashtra's new EV policy may take 'toll' on toll operators' cash flows

Toll waivers on major highways may impact cash flows of operators like IRB, but low EV penetration and expected compensation make long-term effect minimal

The new electric vehicle (EV) policy rolled out by the government of Maharashtra may impact the cash flows of toll road operating companies in the state in the short term.

 

However, industry experts believe the impact will be temporary, as the revenue loss due to the toll waiver is expected to be compensated by the state government under the ‘change in law’ clause of concession agreements. Additionally, EV penetration remains comparatively low.

 

“It’s not an upfront loss, yet from the cash flow point of view, the timing can be a challenge. If this policy is effective immediately, then in the