Roadstar Infra Investment Trust announced NHAI's new policy circular confirming the continued use of a 1.641 linking factor for WPI-based toll revisions. This removes uncertainty over a potential reduction, ensuring stable toll revenue escalation for the Trust's assets.
Roadstar Infra Investment Trust: NHAI Policy Confirms 1.641 WPI Factor for Toll Revisions
National Highways Authority of India (NHAI) Policy Circular No. 18.127/2026 dated July 08, 2026.
Reader Takeaway: Regulatory certainty on WPI factor supports stable toll revenue escalation; potential revenue downside averted.
What just happened
Roadstar Infra Investment Trust has been informed by the National Highways Authority of India (NHAI) that a new policy circular mandates the continued use of a 1.641 linking factor for converting Wholesale Price Index (WPI) data for user fee revisions. This circular supersedes a prior one that had indicated a possible reduction to 1.561.
Why this matters
This development brings crucial regulatory certainty for Roadstar Infra Investment Trust. By re-affirming the 1.641 factor, NHAI has eliminated a significant potential downside risk to toll revenue escalation, which could have impacted the Trust's financial performance. The decision ensures consistency across all concession agreements.
The backstory
The need for a standardized WPI conversion methodology arose from observations by the Comptroller and Auditor General (C&AG) and directions from the Hon'ble High Court of Delhi. The infrastructure sector, particularly tolling, is subject to evolving government policies and administrative directives.
What changes now
No immediate operational changes are mandated beyond the confirmation of the existing WPI linking factor. The supersession of the September 13, 2025 circular means that the previously contemplated reduction to 1.561 will not be implemented. The 1.641 factor remains in effect for user fee revisions.
Risks to watch
While this announcement provides stability, investors should remain aware that tolling policy is subject to government regulations. Future amendments to the National Highways Fee Rules could still influence tolling methodologies and revenue potential.
Peer comparison
This policy applies to all toll road operators with concession agreements with NHAI, including other infrastructure investment trusts and companies operating national highways. The certainty provided by this circular benefits all such entities by standardizing a key revenue escalation component.
Context metrics (time-bound)
The NHAI policy circular is dated July 08, 2026, superseding a circular dated September 13, 2025. The related Ministry of Road Transport & Highways (MoRTH) Office Memorandum is dated June 29, 2026. The WPI linking factor confirmed is 1.641, preventing a potential reduction to 1.561.
What to track next
Investors should monitor future updates or amendments to the National Highways Fee Rules and any further directives from NHAI or MoRTH concerning tolling methodologies. Consistent performance of the Trust's Special Purpose Vehicles (SPVs) under the confirmed policy will be key.