GPS-based toll system to replace FASTag to ensure seamless payment

The government plans to launch a GPS-based toll system in place of FASTag to ensure smooth payment and vehicle movement on national highways, two people familiar with the development said. This move would end the role of toll plazas across the country.

The ambitious plan is being prepared with the Ministry of Road Transport and Highways (MoRTH) beginning work on further amendments to the Motor Vehicle Act to facilitate the new technology-based toll, the Ministry said. one of the people mentioned above, on condition of anonymity.

Although the technology to support GPS-based tolls is currently available and can be implemented quickly, the actual launch may occur in phases, with freeways and freeways under construction being the first to be approved , the person said.

“MoRTH amended the National Road Charging (Tariff Setting and Collection) Rules 2008, allowing toll charges to be levied based on the distance the vehicle travels on the NH. This will facilitate the introduction of a GPS-based toll system, but before such a thing is introduced a lot of work also needs to be done to upgrade the roads with technical infrastructure for a GPS-based system. GPS. Additionally, an amendment to the Motor Vehicle Act may also be required. So full GPS-based tolling eliminating the need for toll plazas is still a long way off,” the person said.

A query sent to MoRTH went unanswered until press time.

The lack of a proper regulatory framework, including privacy concerns, and the lack of powers to prosecute a vehicle based on its location on a highway, also hinder the rapid implementation of the new system. The FASTag system should therefore continue for a few more years before the deployment of the new toll system.

The recently changed toll charge rules also allowed NHAI or highway concessionaires to retain toll plazas on national highways.

Under GPS-based tolling, vehicles will need to be equipped with a device capable of tracking their movements on the highways. Once such a vehicle enters a toll road, a freeway system would track the vehicle and the toll would be charged based on the distance traveled to the freeway exit point.

As part of the system, users will need to register themselves and their vehicles as well as bank accounts which will be used to transfer toll payments. The system is expected to result in lower toll charges, as vehicles will be charged on the actual distance traveled and not on a flat fee as is currently the case at toll plazas.

The GPS-based system is also offered to collect local residential passes or other concessions available for freeway travel.

Meanwhile, according to official data, FASTag penetration has increased from nearly 16% in 2017-18 to 96.3% in 2021-22. Total tolls collected in 2017-2018 were 21,948 crore including 3,532 crores collected through FASTag. However, in 2021-22, toll collection via FASTags increased sharply to reach 33,274 crore on a total toll collection of 34,535 crores.

Catch all the trade news, market news, breaking news and latest updates on Live Mint. Download the Mint News app to get daily market updates.

More less

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Post your comment

About Shirley L. Kreger

Check Also

System-on-chip (SoC) market expected to reach USD 214.8

New York, United States, Sept. 21, 2022 (GLOBE NEWSWIRE) — According to a comprehensive research …