Govt may pay ₹4,500 crore annually to toll operators for FASTag pass

ICRA said the annual FASTag pass will cost the government Rs 4,200-4,500 crore in compensation to toll operators, though relief for commuters will be limited to private vehicles

While highway users may be seeing relief due to the annual pass, rating agency ICRA on Tuesday said the burden on the central government to compensate private toll operators on national highways would be in the range of Rs 4,200–4,500 crore annually.

 

“Passenger car traffic accounts for roughly 35–40 per cent of toll operator revenue, though their share will be relatively higher on national highways around metro cities. Given the Government of India’s thrust on monetisation and attracting private sector investment in toll projects, ICRA expects adequate compensation for toll operators, thereby mitigating any material impact on their coverage metrics,”