Traffic on national highways back to April level, shows CRISIL data

Traffic in April on the national highways witnessed a 15 per cent decline to 160 million toll-paying vehicles against 190 million in March

Topics

National Highways | Crisil | Traffic

Traffic on the national highways has jumped 30-35 per cent in June and reached the level of April. According to the recent data compiled by CRISIL, the onset of the second wave of the pandemic affected traffic in April and May whereas it was at greater th­an pre-pandemic levels, especially in the last quarter of FY21, as economic activities picked up, further backed by the implementation of Fast­ags, the ratings agency said.

The downward trajectory began in April with the fear of rising Covid-19 cases and state-level lockdowns in Mah­arashtra, Chhattisgarh, Rajas­than, Telangana, Delhi, etc.

Traffic in April on the national highways witnessed a 15 per cent decline to 160 million toll-paying vehicles against 190 million in March.

Sequentially, as new Covid-19 cases peaked at over 400,000 a day in the first week of May, almost all states widened restrictions and traffic took a further nosedive of 28 per cent in May, month-on-month, to only 120 million vehicles paying toll.

However, restrictions were less stringent this time than last year, when there was a nationwide lockdown, and industrial activities were allowed (in pockets).

New Covid-19 cases in June have moderated to an average of about 60,000 a day. Therefore, some states have eased restrictions while some still hold on partially. CRISIL Research, however, estimates that as the movement of people and goods picks up, traffic on national highways would grow by 30-35 per cent in June, recovering to 150-160 million vehicles, the same as April levels.

As a result, toll collection on national highways, which shrunk 10 per cent to Rs 2,777 crore in April and 23 per cent to Rs 2,125 crore in May from Rs 3,087 crore in March, would recuperate to Rs 2,400-2,600 crore in June, delivering 18-24 per cent growth on-month.

chart

Toll collection on the national highways increased nine-fold last financial year.

When tolls were suspended in April 2020 for a fortnight, the amount stood at Rs 248 crore. That jumped to Rs 2,770 crore in April this year just when the second wave of the pandemic hit India. The momentum slowed in subsequent months and acco­rding to the latest figure for June, toll stands at Rs 2,500 crore.

The Ministry of Road Transportation and Highways (MoRTH) had suspended tolls on all national highways following the 21-day lockdown in accordance with Ministry of Home Affairs (MHA) guidelines, which were later extended till May 3.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor