Toll Road Operators Face Revenue Dip with FASTag Annual Pass, Reports CRISIL

The National Highway Authority’s introduction of a Rs 3,000 FASTag annual pass for private vehicles is intended to address toll plaza delays. However, a CRISIL report suggests that this initiative will impact the revenue streams of toll operators. According to the report, released on June 25, toll road operators’ revenue is expected to decline by 4-8%. The assessment analyzed 40 active toll road projects to ascertain the implications of the new pricing structure, set to take effect from August 15, 2025. The annual pass is applicable for private vehicles, including cars, vans, and jeeps, offering either over 200 trips or one-year access on national highways and expressways. This could result in substantial savings for travelers, up to 80% or Rs 55-65 per trip, relative to the usual cost of Rs 70-80 per trip, if used for the maximum trips. The new compensation process requires discussion among stakeholders to finalize implementation details. This could potentially lead to delays in reimbursing toll operators. CRISIL’s profile ratings anticipate that the credit risk profiles of rated toll operators will remain steady during this period. Toll operators face the challenge of seeking compensation from NHAI instead of collecting payments directly from users at toll gates. CRISIL further notes that a greater-than-expected adoption rate of the pass could lead to increased short-term revenue losses, requiring close monitoring. The CRISIL assessment took into consideration the debt coverage service ratios and liquidity of rated toll road projects, with the operators seemingly having adequate cash flow to manage the transition before the full implementation of the compensation mechanisms. Anand Kulkarni, Director, CRISIL Ratings, noted that private vehicles comprise 35-40% of the total traffic volume, but only contribute 25-30% to the revenue. The decline in revenue is estimated to be around 4-8%. Timely implementation of the compensation mechanism is critical for the sector’s growth.