Farmers' protest causes Rs 600 crore loss in toll collections; debt worth Rs 9,300 crore at risk: ICRA
According to ICRA, even if the farmers' protest end by February, there would still be a steep decline of 30-35 per cent in toll collection on national highways in Punjab, Haryana and Delhi-NCR region for FY21, as compared to 5-7 per cent drop for rest of India
- Feb 2, 2021,
- Updated Feb 2, 2021 4:23 PM IST
The farmers' agitation against new farm laws has led to an approximate loss of Rs 600 crore in toll collection until January end, according to ICRA. As per the agency, even if the protests end by February, there would still be a steep decline of 30-35 per cent in toll collection on national highways in Punjab, Haryana and Delhi-NCR region for FY21, as compared to 5-7 per cent drop for rest of India. Adding to it, the protest has also put Rs 9,300 crore of debt at risk.
This would be a double whammy for toll road projects in Punjab, Haryana and Delhi-NCR region as their toll collection had already been impacted by COVID-19 pandemic.
As per ICRA, around 52 toll plazas [includes both public funded and BOT (built, operate and transfer)] for national highways (NHs) operated in Punjab, Haryana and Delhi-NCR have been directly or indirectly affected due to farmers protests. Until January 26, 2021, these national highway toll plazas would have incurred an estimated revenue loss of around Rs 560 crore; out of which approximately Rs 410 crore is estimated for BOT concessionaires. Besides, the revenue loss in state highway projects in these regions would be additional, the agency said in a report.
"Any possible damages to the toll plazas due to the protests would be an added cost burden for the concessionaires," it said.
The farmers' agitation against new farm laws has led to an approximate loss of Rs 600 crore in toll collection until January end, according to ICRA. As per the agency, even if the protests end by February, there would still be a steep decline of 30-35 per cent in toll collection on national highways in Punjab, Haryana and Delhi-NCR region for FY21, as compared to 5-7 per cent drop for rest of India. Adding to it, the protest has also put Rs 9,300 crore of debt at risk.
This would be a double whammy for toll road projects in Punjab, Haryana and Delhi-NCR region as their toll collection had already been impacted by COVID-19 pandemic.
As per ICRA, around 52 toll plazas [includes both public funded and BOT (built, operate and transfer)] for national highways (NHs) operated in Punjab, Haryana and Delhi-NCR have been directly or indirectly affected due to farmers protests. Until January 26, 2021, these national highway toll plazas would have incurred an estimated revenue loss of around Rs 560 crore; out of which approximately Rs 410 crore is estimated for BOT concessionaires. Besides, the revenue loss in state highway projects in these regions would be additional, the agency said in a report.
"Any possible damages to the toll plazas due to the protests would be an added cost burden for the concessionaires," it said.