No decision yet on nationwide rollout of satellite-based tolling system from May 1, govt clarifies

No decision yet on nationwide rollout of satellite-based tolling system from May 1, clarifies govt

Government on April 18 clarified that no decision has been taken yet on the nationwide rollout of the satellite-based tolling system from May 1, 2025,

"Some sections of the media have reported that a Satellite-based Tolling System will be launched from 1st May 2025 and will replace the existing FASTag-based toll collection system. This is to clarify that no such decision has been taken by the Ministry of Road Transport and Highways or National Highways Authority of India (NHAI) regarding the nationwide implementation of satellite-based tolling from 1st May 2025," said MoRTH in a statement.

In order to enable seamless, barrier-free movement of vehicles through toll plazas and reduce travel time ‘ANPR-FASTag-based Barrier-Less Tolling System’ will be implemented at selected toll plazas, added MoRTH.

The advanced tolling system will combine ‘Automatic Number Plate Recognition’ (ANPR) technology, that will identify vehicles by reading their number plates, and the existing ‘FASTag system’ that uses Radio-Frequency Identification (RFID) for toll deduction. Under this, vehicles will be charged based on their identification through high performance ANPR cameras and FASTag Readers, without needing to stop at the toll plazas. In case of non-compliance, E-Notices will be served to the violators, non-payment of which may result in suspension of FASTag and other VAHAN related penalties.

NHAI has invited bids for the implementation of ‘ANPR-FASTag-based Barrier-Less Tolling System’ that will be installed at selected toll plazas. Based on the performance, efficiency, and user response to this system, a decision will be made regarding its implementation across the country, the ministry said.

All user fee plazas on National Highways are established as per the provision of National Highways Fee (Determination of Rates and Collection) Rules, 2008 and the respective Concession Agreement.

India’s toll collection has surged in recent years, with revenue reaching Rs 64,809.86 crore in 2023-24, a 35% increase from the previous year. In comparison, the collection stood at Rs 27,503 crore in 2019-20.