NHAI Toll Hike from Monday: Rates to Rise by 3-5% Post-Elections, Impact on Motorists and Markets Explained
The National Highway Authority of India or the NHAI is going to increase the toll charges from Monday.
The hike is said to be to the tune of 3-5%.
The annual hike in the toll charges is done every year in April.
However, the hike was on hold due to the Lok Sabha 2024 elections.
The toll charges are hiked to keep in tune with inflation.
There are more than 1,100 toll plazas in the country.
NHAI Toll Price Increase from Monday
A senior official at the National Highways Authority of India told Reuters,
‘As the election process is over, the revision of user fee (toll) rates, which was put on hold during the elections, will become effective from June 3,’
The Highway Authorities support the annual hike in toll charges and taxation on fuel products because they help cover the costs of expanding the national highway networks.
However, motorists and opposition parties criticized the move as it will increase prices of essential commodities and the poor will be most affected.
The move will benefit Highway Operators like IRB Infrastructure Developers and Ashok Buildcon Ltd.
India has seen a massive expansion of its national highways with a total length of about 146,000 kilometers, the second-largest global road network in the world after the United States.
The last decade has seen a massive influx of funds in expanding the infrastructure.
In the fiscal year 2022/23, toll collection has seen a massive surge from 252 billion in 2018/19 to 540 billion rupees.
Improved infrastructure has also led to a massive increase in road traffic as well as the number of toll plazas and charges.
Toll charges are levied on vehicles while crossing certain interstate expressways, and national, and state highways.
They fall under the purview of National Highway Authority of India (NHAI) control and are levied only on four wheels and higher vehicles, but pedestrians and two-wheelers are exempt from paying the toll charges.
The increase in toll charges has led to a surge in IRB Infrastructure shares, which has come on the back of heavy trading volumes.
IRB Infra shares have surged by 10% to near-record highs on reports of an increase in toll tax.
IRB Infra shares opened 10% higher to hit a day’s high of ₹74.60 on Monday. If the trend continues, it can surely reach an all-time high since it is just 2.5% away from its all-time high level of ₹76.55, hit on May 27 this year.
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