<p>Rating agency Icra on Tuesday said that high Wholesale Price Index (WPI) inflation is a blessing in disguise for toll road projects as toll collections are set to witness 14-15 per cent growth in 2022-23.</p>.<p>Hikes in toll rates are linked to the WPI while the traffic volume is linked to underlying economic activity, primarily manufacturing, construction, and mining.</p>.<p>Typically, toll rates and traffic volumes are the two variables that determine toll collections.</p>.<p>Icra said in a statement that it expects the toll road projects to benefit from the high WPI inflation as it will lead to an increase in toll rates and thereby collections.</p>.<p>It also noted that the healthy growth in toll collections far outweigh the increase in maintenance costs.</p>.<p>WPI for December 2021 is expected to be around 13 per cent as against WPI of 2 per cent in December 2020, it said.</p>.<p><strong>Check out latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>
<p>Rating agency Icra on Tuesday said that high Wholesale Price Index (WPI) inflation is a blessing in disguise for toll road projects as toll collections are set to witness 14-15 per cent growth in 2022-23.</p>.<p>Hikes in toll rates are linked to the WPI while the traffic volume is linked to underlying economic activity, primarily manufacturing, construction, and mining.</p>.<p>Typically, toll rates and traffic volumes are the two variables that determine toll collections.</p>.<p>Icra said in a statement that it expects the toll road projects to benefit from the high WPI inflation as it will lead to an increase in toll rates and thereby collections.</p>.<p>It also noted that the healthy growth in toll collections far outweigh the increase in maintenance costs.</p>.<p>WPI for December 2021 is expected to be around 13 per cent as against WPI of 2 per cent in December 2020, it said.</p>.<p><strong>Check out latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>