IRB Infra impacted by Maharashtra govt’s decision to shutter 44 toll gates
The reported decision by the Maharashtra government to shut down 44 toll gates in the state has apparently triggered the sale of the shares of IRB Infrastructure Developers Ltd.; with the company’s stock having already witnessed a 9 percent plunge in the last three trading sessions.
The decision by the government to close the toll gates is a consequence of a series of agitations by politicians as well as citizens.
With the government’s decision bound to limit IRB’s profits, the government has said that it will give a compensation of Rs. 300-360 crore to all toll road operators affected by the ‘toll gates shutdown’ decision.
It is not yet clear as to how many of the IRB’s road projects constructed in the build-operate-transfer (BOT) mode will be affected by the government’s decision to shut 44 toll gates. The company’s portfolio currently lists two-fifths of it road projects being constructed on the BOT mode; and a March presentation by the company has revealed that as many as 11 BOT projects are operational in Maharashtra.
IndiaNivesh Securities Pvt. Ltd. has disclosed that four of IRB’s BOT projects in Maharashtra will apparently be impacted by the government’s decision to shutter 44 toll gates. Altogether, a total of Rs. 56 crore was generated in toll revenue by these four projects in the last fiscal year. However, the four projects have contributed relatively low total BOT toll revenue, at 3.3 percent.
Source – Mint
44 toll booths across the state will be completely shut, Deputy CM Ajit Pawar announced a decision to shut down 44 toll plazas, Maharashtra government to shut down 44 toll gates, state government has decided to do away with 44 toll plazas in the state
