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Explained: The new highway tolling system being implemented soon in India

TOI Lifestyle Desk
| ETimes.in | Last updated on - Apr 7, 2024, 11:41 IST
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1/7

Embracing the future of toll collection

India is poised to transform its highway tolling system through the implementation of a new satellite-based toll collection system. This cutting-edge technology, spearheaded by the Ministry of Road Transport and Highways, is poised to replace the current FASTag system. The new system promises to enhance efficiency, reduce traffic congestion, and provide a seamless travel experience for millions of commuters. By leveraging the Global Navigation Satellite System (GNSS) and GPS technology, the system will charge vehicles based on the actual distance traveled, marking a significant shift from the traditional toll booths. This article takes a deep dive into the complexities of the upcoming tolling system, its implementation, and the profound impact it will have on India’s transportation infrastructure.

Image: iStock

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The satellite-based toll collection mechanism

The new tolling system utilizes satellite technology to track vehicle movement across highways. With the integration of an on-board unit (OBU) in every vehicle, and a proper digital image processing system which will record coordinates along national highways, the toll charges will be calculated based on the precise distance covered. This method stands in stark contrast to the fixed-rate tolls at physical booths, offering a fair and transparent billing system. The satellite-based system is designed to automatically deduct the toll amount from the vehicle owner’s linked digital wallet, thereby eliminating the need for stopping at toll plazas. This innovative approach is expected to significantly reduce traffic bottlenecks at toll booths and contribute to a smoother flow of traffic on India’s bustling highways.

Image: iStock

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Transition from FASTag to satellite tolling

The current RFID-based FASTag system, while a step up from manual toll collection, has its limitations. The new satellite-based system addresses these by ensuring that toll collection is directly proportional to the distance traveled, rather than a flat rate at each toll plaza. This transition is not only expected to streamline the tolling process but also to minimize the chances of toll evasion. The government plans to run pilot projects to ensure a smooth transition, with the aim of fully implementing the satellite-based system by March 2024.

Image: iStock

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Implementation strategy and challenges

Implementing a satellite-based toll collection system on a national scale involves significant logistical and technical challenges. The government will need to ensure widespread installation of OBUs in vehicles, establish a robust digital payment infrastructure, and set up a centralized monitoring system. Additionally, public awareness campaigns will be crucial to educate vehicle owners about the new system and its benefits. The success of this ambitious project will depend on the collaboration between various stakeholders, including vehicle manufacturers, toll operators, and the driving public.

Image: iStock

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Economic implications and revenue generation

The shift to a satellite-based toll collection system is expected to have a substantial economic impact. By eliminating delays at toll plazas, it will save time and fuel, contributing to a reduction in the overall cost of transportation. Moreover, the system’s ability to accurately track vehicle movement and charge accordingly is projected to increase the National Highway Authority of India’s (NHAI) toll revenue significantly. This increase in revenue will be instrumental in funding further improvements to the country’s road infrastructure.

Image: iStock

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Future prospects and technological advancements

The introduction of the satellite-based toll collection system is just the beginning of India’s journey towards a technologically advanced transportation network. This system sets the stage for further innovations, such as dynamic pricing based on traffic conditions and integration with smart city projects. As India continues to grow and urbanize, the adoption of such technologies will be crucial in managing the increasing demands on its transportation infrastructure.

Image: iStock


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What are the challenges?

One significant challenge of this technology is toll recovery when a road user fails payment, especially if their digital wallet linked with the OBU is empty. Without barriers, issues arise such as non-compliant vehicles, absence of OBUs, deliberate device shutdown for evasion, or misuse like installing a car's OBU on a truck for reduced toll. Implementing ANPR-based violation capture systems on Indian highways is necessary but currently absent.

Top Comment
M
Mukund k
784 days ago
HiWe appreciate Mr.Ganesh Iyer and Mr Cyrush Kapadia comment. I too agree for this.As politicians without doing anything to citizens THEY DEMAND BENIFITS which is totally wrong on there part. We should bycot for them. This satlight msg should reach to Transport Minister. He should keep track to politicians.
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Copyright © May 31, 2026, 02.20PM IST Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service