reverse_gear BHPian

Join Date: Jan 2015 Location: Mumbai Posts: 266 Thanked: 289 Times

Re: So, how much toll is actually collected on a normal busy highway? Quote: tsk1979 Originally Posted by For the 291kms stretch the total number of toll plazas are

Karnal = 110rs toll

Punjab haryana border 70rs toll

Ludhiana border = 120rs toll



These are car rates.

So total toll collected would be around 500 crores/year.



Remember, this lane was already 4 laned earlier. Now its widening and flyovers.



Secondly work on many areas has been stalled for many years, so they are not spending the money of course.



Thirdly, the entire 4500crore won't be from the private company, would it be?



The entire amount would have been funded by the private consortium along with bank loans. Had a quick look at the concession agreement on NHAI, and in fact they are paying a 20% royalty to NHAI (which increases by 1% each year).



Frankly, it looks like a basket case for the private developer who has put up this project. Typically, they would need to make ~14% return on investment to meet their cost of debt and equity. If they end up spending 4500 cr and recover 450 cr per year (assuming 10% spent on maintenance, operation, etc.), the return is just 10%. Further, if you deduct the royalty that they are paying to NHAI, it will reduce to 7%. The HT article states that 29% was incomplete as of April 2014, meaning that ~3,200cr had already been spent by that time. Presumably that spend would have gone up in the intervening year.The entire amount would have been funded by the private consortium along with bank loans. Had a quick look at the concession agreement on NHAI, and in fact they are paying a 20% royalty to NHAI (which increases by 1% each year).Frankly, it looks like a basket case for the private developer who has put up this project. Typically, they would need to make ~14% return on investment to meet their cost of debt and equity. If they end up spending 4500 cr and recover 450 cr per year (assuming 10% spent on maintenance, operation, etc.), the return is just 10%. Further, if you deduct the royalty that they are paying to NHAI, it will reduce to 7%.