Noida Toll Bridge to hike rates by 20% from Feb 15

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Noida Toll Bridge to hike rates by 20% from Feb 15

In an interview with CNBC TV-18's Mitali Mukherjee and Udayan Mukherjee, Harish Mathur, managing director, Noida Toll Bridge said that the company is attempting to raise toll rates from February 15, 2011.

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In an interview with CNBC-TV18's Mitali Mukherjee and Udayan Mukherjee, Harish Mathur, managing director of  Noida Toll Bridge said that the company will raise its toll rates from February 15, 2011 by 20%.

"The toll rates we are proposing, will be as per the consumer price index (CPI) and will be around 20%. But looking to the category, we are not proposing increase in two-wheelers toll rates. The net increase excluding two-wheelers will be around Rs 15 crore per annum," he added.

Below is the verbatim transcript of the interview. Also watch the accompanying video.

Q: Can you take us through what kind of changes you have affected and starting when?

A: The toll hike is inbuilt in the concession agreement as being done on all projects. The toll increase is proposed every year based on CPI but last two years we did not increase the toll. And this year, since we are to ensure good service quality level and reduction in the toll period of the vehicle we are proposing an increase from February 15.

Q: How much will rates go up and how much will it add to your quarterly revenue runrate?

A: The toll rates we are proposing, will be as per the CPI and will be around 20%. But looking to the category, we are not proposing increase in two-wheelers toll rates. The net increase excluding two-wheelers will be around Rs 15 crore per annum. So, per quarter it will be around Rs 3.75 crore.

Q: If I am not mistaken, you had announced a rate hike somewhere in 2009 and then you had to recall that because of pressure, this time around are you confident it will go through?

A: Yes, this time if we don't hike the rates, we will not be able to service the quality level or the safety of the people travelling on this, because all the assets need some maintenance. And this has been apprised to our board of directors who have already accorded approval for this.

Q: By which quarter will the benefits of this start showing up?

A: We are proposing increase from February 15. So, last quarter we will have some increase and probably next year onwards it will have an increase of about Rs 3.75 crore per quarter.