India to increase road toll charges from Monday
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 02 2024
0mins
Source: reuters
- Toll Hike in India: India will increase road toll charges by 3-5% across the country starting from June 3, following a hold on the annual increase during the elections.
- Annual Revision of Toll Charges: Toll charges in India are revised annually to align with inflation, affecting nearly 1,100 toll plazas with hikes announced through local newspapers.
- Purpose of Toll Increases: The toll charge hikes and fuel product taxation aim to fund the expansion of national highways, despite criticism from opposition parties and motorists for increasing transport costs.
- Beneficiaries of Toll Increases: Highway operators like IRB Infrastructure Developers and Ashok Buildcon Ltd stand to benefit from the toll increases in India.
- Infrastructure Development: India has heavily invested in expanding its national highways over the last decade, resulting in a significant increase in toll collections to over 540 billion rupees in the 2022/23 fiscal year.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
