NHAI looking to work with financial institutions, banks to operate barrier-free toll plazas

GNSS-based Electronic Toll Collection system

The National Highways Authority of India (NHAI) is turning to banks and financial institutions to set up the country's first barrier-less free-flow tolling system. It has invited tenders for these systems on two highways.

"The NHAI has opened two new tenders to set up multi-lane free flow (MLFF) toll collection on national highways, so that banks and other financial institutions can also bid for these projects and operate these toll plazas," a senior official from the NHAI told Moneycontrol.

The Dwarka Expressway and Delhi -Chandigarh stretch of National Highway 44 will be the two highways, he said.

Why are banks being roped in?

He added that the decision to relax initial bidding norms for the proposed tolling system was taken after the global expression of interest (EoI) floated in June 2024 to develop and implement GNSS-based Electronic Toll Collection system in India received tepid interest from incumbent and legacy market players.

"The global EoI failed to unlock a competitive price to set up the new barrier less free-flow tolling systems. Hence, new tenders have been floated after receiving interest from banks to operate such tolling systems," the official added.

Tenders to set up the new tolling systems on the Dwarka Expressway and Delhi -Chandigarh stretch of National Highway 44 were floated in November and December 2024, respectively, and will be opened in the next few months.

The bank offering the highest revenue share will secure the toll collection rights. This new setup means no need for toll collectors or operators. The whole process will be seamless and digital, a second NHAI official said.

The NHAI has been trying to launch barrier-free tolling by implementing GNSS-based Electronic Toll Collection system in India but has so far struggled to find potential partners to develop and operate these systems.

"Opening the toll operation markets to banks will help unlock better value to the NHAI, which will, in turn, help keep funds incoming for the maintenance of the national highways and will boost traffic in the long term," he said.

How will it work?

Free-flow tolling is based on a simple principle: automatic detection of each vehicle while it is on the highway and assigning it the amount of toll dues without stopping the vehicle or even making it slow down.

Also, the system will detect vehicles with invalid or missing tags. Non-paying vehicles will be flagged, and their details will be shared with the Vahan database, the central registry for vehicle information.

The MLFF system is expected to reduce congestion and pollution, making travel smoother. Any unpaid tolls will appear on the Vahan portal or app, complete with vehicle photos for proof. Clearing these dues will soon become necessary for obtaining an NOC or a fitness certificate.

The gantries above the traffic lanes will have equipment that determines the category of vehicles (cars, heavy goods vehicles, etc.), according to their volume and the number of axles. These sensors cover all lanes of the motorway, including the hard shoulder. They identify the position of the vehicle on the road and its direction of travel, whatever the traffic or weather conditions. The system takes into account the Liber-t electronic toll tag in vehicles equipped with it.