THRISSUR: The name Guruvayoor Infrastructure Private Ltd (GIPL) may not ring a bell for many, but for commuters in Kerala, it is synonymous with the Paliakkara Toll Plaza, a site of repeated public agitation against toll collection.
Over the years, commuters have accused the company that runs the Paliakkara Toll Plaza of overcharging, failing to maintain road quality, and extending the toll collection period beyond what was initially promised. But in a surprising twist, the very company that many believed was fleecing the public has now posted a loss for the financial year 2023-24 (FY24).
GIPL, which operates the Thrissur-Angamali section of NH-47 under the build, operate, and transfer (BOT) model, reported a net loss of Rs4 crore in FY24 – marking a stark contrast to its Rs17 crore profit in FY23.
Profitability turning into loss comes despite an increase in operating income, which rose from Rs164.2 crore in FY23 to Rs187 crore in FY24.
The numbers raise an obvious question: How did the company post a loss even after generating a higher opwraring income?
The catch: Rising costs?
While the exact breakdown of expenses is not publicly available yet, industry experts point to increased operational costs, higher interest payments on debt, or a rise in maintenance expenses as the possible reasons behind the loss this time
The project achieved provisional commercial operation date (PCOD) in December 2011, and tolling operations commenced in February 2012. The total project cost was Rs726 crore, which was funded by the promoter’s contribution of Rs226 crore (Rs169 crore as equity and Rs57 crore as unsecured loans from promoters) and external debt of Rs465 crore.
Another potential factor for the loss in FY24 could be regulatory changes impacting toll revenue collection or increased concession fees payable to the National Highways Authority of India (NHAI). What happened to the dues KSRTC owed to the company is yer to be known.
The irony of this situation is hard to miss. A company that was perceived as a relentless revenue-generating machine is now struggling to stay profitable. While the public might find some ‘satisfaction’ in the news, the financial strain could lead to more aggressive toll hikes or a demand for an extension of toll collection tenure – something that could further anger commuters.
No chance?
Public outrage
For years, Paliakkara Toll has been a hotbed of protests against toll collection, with demands for its removal gaining momentum. The latest financials of GIPL might change the perception that the company is making easy money off motorists.
However, whether this loss translates into a review of toll charges, government intervention, or just a temporary blip in the company’s financials remains to be seen. Businessbenchmark.news has just made a guess of what these developments could lead to.
For now, the Paliakkara Toll continues to function as a paradox – unpopular among commuters yet struggling to turn a profit.
