Over the recent years, India’s tolling system has undergone a significant transformation. It has transitioned from a manual, cash-based toll collection system to an electronic toll collection (ETC) system, FASTag. While this has led to significant improvements in the toll collection process in terms of efficiency and user convenience, some challenges still remain. These include technical issues and occasional long queues during peak hours on national highways.
To further improve toll collection, the government now aims to transition to more advanced global navigation satellite system (GNSS)-based tolling technology. GNSS, a satellite-based, barrier-free tolling system, has the potential to revolutionise toll collection in India in the coming years, provided its implementation aligns with the envisioned goals. However, adopting more advanced technologies will introduce a new set of challenges, including the need for modern infrastructure, seamless execution and effective resolution of customer concerns regarding the new system.
Revolutionising tolling through FASTag
Over the years, the government’s continuous efforts to promote FASTag have driven its nationwide adoption. As per the Ministry of Road Transport and Highways, FASTag accounts for 98.5 per cent of all toll transactions, as of March 2024.
This transition towards newer technology began in 2013, when India’s first closed-loop tolling system based on radio frequency identification technology was rolled out on the Ahmedabad-Mumbai national highway, consisting of six toll plazas. Over the next few years, the closed-loop system was introduced on a few other stretches. However, this highlighted the need for a standard national-level toll collection solution for India.
The year 2016 saw the nationwide launch of the National Electronic Toll Collection programme, with the National Payments Corporation of India serving as the central clearing house for toll transactions, ensuring interoperability across toll plazas. Later, the government mandated the use of FASTag and declared all lanes at toll plazas on national highways as “FASTag lanes”, effective from midnight on February 15-16, 2021. Since then, FASTag adoption has grown significantly across the country.
In December 2024 alone toll collections through FASTag amounted to approximately Rs 66.42 billion, a sharp increase from the Rs 3.2 billion recorded in December 2017, highlighting its exponential growth and adoption. Toll collection through FASTag grew at a CAGR of around 63 per cent between 2017-18 and 2023-24.
The implementation of FASTag has provided various benefits. As per the government, the average wait time at toll plazas has dropped from 714 seconds to just 47 seconds, significantly improving traffic flow. This reduction not only saves time, but also leads to fuel savings, thereby contributing to environmental benefits. By eliminating the need for cash payments, FASTag streamlines the tolling process, reducing congestion and cutting travel time for commuters. Further, FASTag is now being used for cashless payments at parking spaces across India, expanding the scope of digital payments and contactless transactions.
The benefits of FASTag extend beyond user experience. The ETC system also helps mitigate revenue leakage, bringing more transparency to toll collection. It ensures more accurate and higher toll collection, enabling a precise valuation of road assets, making India’s highway infrastructure more attractive for investment in the long run.
There is no doubt that the results have been remarkable. However, FASTag technology has yet to fully meet the government’s expectations. Road commuters still face issues such as occasional long queues on national highways during peak hours and technical issues like unauthorised deductions and double debits.
To address these challenges and improve the tolling system, the government is exploring automatic number plate recognition (ANPR) technology at select locations by integrating it with the existing toll collection system. By using high-resolution cameras, ANPR automatically reads vehicle number plates and synchronises with the FASTag ecosystem for more accurate and faster tolling. This initiative aims to improve transparency, reduce errors and minimise disputes over toll charges.
Transition to satellite-based tolling
The government has started exploring a more advanced, satellite-based tolling system to further enhance efficiency and provide a seamless travel experience. This technology eliminates the need for physical toll booths, offering a non-stop travel experience. It will track vehicle movement through GPS and charge users based on the exact distance travelled on a highway instead of imposing a uniform fee for all users. The primary objective is to eliminate long queues at toll booths during peak hours by implementing this barrier-free, automated tolling solution.
As of December 2024, a pilot project for GNSS-based toll collection had already been conducted on the Bengaluru-Mysore section of NH-275 in Karnataka and the Panipat-Hisar section of NH-709 in Haryana. Furthermore, the pilot revealed that fully compliant AIS-140 vehicle location tracking devices with certain modifications are suitable for GNSS-based tolling. However, the government plans to initially utilise existing tolling infrastructure for a barrier-free ETC system at select locations, along with the FASTag payment mechanism, and gradually introduce GNSS for a smooth transition until the technology matures. Furthermore, as of December 2024, the government has invited a request for proposal to implement a barrier-free user fee collection system on the Dwarka Expressway.
Experience and challenges ahead
Implementing a GPS-based toll collection system is a complex task with its own set of challenges. Stakeholders have raised concerns regarding the privacy implications of this technology, as vehicles can be continuously tracked through the installed devices. Additionally, the proposed system of automated toll deduction via linked bank accounts may lead to disputes regarding transparency and potential incorrect transactions. Technical issues, such as adjacent service lanes being mistakenly tolled due to the system’s inability to differentiate them, have also been highlighted. Moreover, the technology requires an onboard unit to track vehicle movement, incurring extra costs. This may hinder the transition to the new system. As the technology moves into advanced stages of implementation, newer challenges will arise, and addressing them will be crucial for a smooth transition.
GNSS technology has already gained significant global experience. In Europe, for instance, GNSS-based tolling has been adopted for several years now, with Germany pioneering the initiative. Countries including Slovakia, Belgium, Hungary, Russia and Germany have been using this technology to toll heavy trucks. Back in 1999, Germany had launched a plan for distance-based tolling. In 2002, it awarded contracts to major companies, DaimlerChrysler and Deutsche Telekom, to develop the system. However, technical issues during the project’s implementation led to significant delays and budget overruns, with the system finally being implemented in 2005.
Although the technology has become more advanced and robust over the years, the Indian road landscape presents distinct operational challenges. According to industry reports, as of 2020, GNSS accounted for 74 per cent of tolled roads in the European Union, covering over 85,000 km, whereas India’s national highway network alone spans over 146,195 km with much more crowded roads. These factors introduce unique challenges that may require targeted interventions once operations begin.
While the centre has been discussing barrier-free tolling for several years now, commuters are still awaiting its full-scale roll-out. Advanced solutions for barrier-free tolling such as ANPR and GNSS have demonstrated success globally and have the potential to advance India’s tolling system. However, significant groundwork remains before the government can achieve the ambitious goal of seamless tolling.
Bhavya Bhandari