May hike car toll rates by 10-20% in Q2FY12: Noida Toll

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May hike car toll rates by 10-20% in Q2FY12: Noida Toll

In an interview with CNBC-TV18, Harish Mathur, CEO, Noida Toll Bridge spoke about the latest happenings in the company and the road ahead. He expects traffic to grow by 5% in FY12.

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In an interview with CNBC-TV18, Harish Mathur, CEO, Noida Toll Bridge spoke about the latest happenings in the company and the road ahead. He expects traffic to grow by 5% in FY12. The company is planning a 10-20% increase in toll for cars by Q2FY12.

Below is the verbatim transcript of his interview with Reema Tendulkar and Ekta Batra of CNBC-TV18. Also watch the accompanying video.

Q: Could you tell us currently what's the debt on your book and on account of rate hikes, which have undertaken by many of the banks and even going forward, will there be any kind of interest rate pressure on you all?

A: The balance debt on the company is about Rs 148 crore and since the interest rate on this loan is a fixed rate interest, so we don't have any direct effect of radiation of interest in the market.

Q: Could you also give us an update on a construction of a bridge over Yamuna, which was expected to start in May, has that begun?

A: As far as the bridge on this Yamuna is concerned, we don't have any planning, but we have requested. We just wanted to have connectivity of Barapullah bridge with BND bridge so that the residents of Mayur Vihar are benefited and the bridge can be optimally utilized.

Q: Can you then give us an update on this Barapullah bridge, which you all have planning or which you all have asked to build, what is the status on that and when can we hear something concrete?

A: Actually, we appointed a technical consultant to make any study for the technical and the financial model for that. We have requested and we are in touch with the Government of Delhi, things should materialize soon and we will decide on modalities of perfection.

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Q: There was this one controversial thing, which affected the stock sometime back was the hike for the toll rates for cars by 10 to 20%, which took place in Q2 FY12 and FY11 and it was rollback, can you give us an update what the status is on that?

A: Actually, we have increased and proposed the hike as per the formula mentioned in the concession agreement, but there was some protest and some resistance from the local user. So, we had to roll it back and we are in touch with the Noida authorities, so that we can just decide on increase in the toll. But as I have already told you it will be between 10-22%.

Q: When could we hear about this and how would you possibly solve this agitation that you might face?

A: No, there is no issue of agitation. We are hopeful that in this quarter we will be able to get some concrete data for increase in hike in the toll rates, but it's a countrywide phenomena's increase in toll rate. So, we will try to convince the people and we will do a solution in consultation with them.

Q: Can you talk about the kind of volume growth, traffic growth, you are expecting in FY12?

A: We are expecting atleast 5% growth in the traffic. Last year was not so good because of the Commonwealth Games, schools were closed and there were some delays or the extended rainy season also, but this year it should grow by 5% because this April has given us positive signs.