Govt Clarifies No Decision Yet on Nationwide Satellite-Based Tolling System Rollout from May 1

No Decision on Nationwide Rollout of Satellite-Based Tolling System

On April 18, 2025, the Ministry of Road Transport and Highways (MoRTH) clarified that no final decision has been made regarding the nationwide rollout of a satellite-based tolling system, despite media reports suggesting its launch on May 1, 2025.

The ministry stated that the reports circulating about the replacement of the existing FASTag-based system with a satellite-based tolling system are inaccurate. MoRTH confirmed that no such nationwide implementation has been approved by the ministry or the National Highways Authority of India (NHAI) for the stated date.

Highlights

• No nationwide rollout of satellite-based tolling system on May 1, 2025.

• Clarification issued by the Ministry of Road Transport and Highways (MoRTH).

• Media reports regarding the implementation of a satellite-based system are not accurate.

Introduction of ‘ANPR-FASTag-Based Barrier-Less Tolling System’

Instead, MoRTH highlighted that an ‘ANPR-FASTag-based Barrier-Less Tolling System’ will be tested at selected toll plazas. This system will combine two technologies: Automatic Number Plate Recognition (ANPR), which reads vehicle number plates, and the existing FASTag system, which uses Radio-Frequency Identification (RFID) for toll deduction.

The aim of this system is to ensure seamless, barrier-free movement of vehicles through toll plazas, thus reducing travel time. Vehicles will be identified and charged based on their number plates and FASTag, eliminating the need to stop at toll plazas. In cases of non-compliance, E-Notices will be issued to violators, and penalties may include suspension of FASTags or other VAHAN-related sanctions.

Highlights

• ‘ANPR-FASTag-Based Barrier-Less Tolling System’ to be implemented at selected toll plazas.

• System aims to reduce travel time by allowing vehicles to pass without stopping at toll booths.

• Non-compliance may result in E-Notices and penalties, including suspension of FASTag.

Future Plans and Bidding for Implementation

The NHAI has invited bids for the installation of the ANPR-FASTag system at selected toll plazas. Based on the performance, efficiency, and user feedback, the ministry will assess whether to expand the system nationwide.

This step is part of ongoing efforts to modernize toll collection systems in India, which have seen a significant increase in revenue. In the 2023-24 fiscal year, India’s toll revenue surged to Rs 64,809.86 crore, a 35% increase from the previous year.

Highlights

• Bids invited for the implementation of the new tolling system at selected plazas.

• National rollout to depend on performance and user response to the system.