India’s New Toll Policy: Annual & Lifetime Payment Options, Satellite-Based Tolling & FASTag Upgrades

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The Government of India is planning a revised toll policy to ease costs for frequent highway users while ensuring efficient revenue collection.

India’s New Toll Policy: Annual & Lifetime Payment Options, Satellite-Based Tolling & FASTag Upgrades

NEW DELHI: The Government of India is gearing up to introduce a revised toll policy aimed at providing financial relief to frequent users of national highways while ensuring efficient revenue collection.

Union Minister for Road Transport and Highways, Nitin Gadkari, recently announced plans to implement a more balanced toll system that reduces the burden on regular commuters without compromising infrastructure development.

The proposed measures include annual and lifetime toll payment options, advancements in satellite-based tolling, and improvements in FASTag technology. By modernizing toll collection mechanisms and addressing user concerns, the initiative seeks to enhance travel convenience and streamline highway operations across the country.

The Government of India is working on a strategic plan to provide relief to regular users of national highways by reducing their toll expenses. Union Minister for Road Transport and Highways, Nitin Gadkari, recently announced that a new toll policy is in the pipeline, aimed at making highway toll charges more reasonable for commuters.

The initiative seeks to balance government revenue generation with enhancing travel efficiency and user convenience at toll plazas.

Proposed Annual and Lifetime Toll Charges

The Ministry of Road Transport and Highways (MoRTH) is considering the introduction of annual and lifetime toll payment options to ease the financial burden on frequent highway users.

As per the proposed structure, motorists would have the option to pay a lump sum of Rs 3,000 per year or opt for a one-time payment of Rs 30,000 for 15 years to access national highways. This initiative aims to streamline toll collection while ensuring that the government maintains steady revenue flow for infrastructure development and maintenance.

Addressing Rajya Sabha Queries: Satellite-Based Tolling

Responding to queries in the Rajya Sabha, Minister Gadkari highlighted the ongoing deliberations on adopting satellite-based tolling systems. Various committees have been formed to assess the feasibility of this technology, particularly in terms of security, privacy concerns, potential data breaches, and operational control mechanisms. The introduction of such a system would revolutionize toll collection, eliminating the need for physical toll plazas and ensuring seamless travel for commuters.

Minister Gadkari reaffirmed the necessity of toll charges, citing the massive financial investments required for constructing and maintaining national highways. He stated, 

“It is the policy of the department that when you want a good road, you have to pay for it.” 

His remarks underline the government’s stance that high-quality infrastructure demands sustained funding, which can be effectively sourced through toll revenues.

Under the National Highways Fee (Determination of Rates and Collection) Rules, 2008, toll plazas on the same section and direction of a national highway must be spaced at a minimum distance of 60 kilometers. This regulation is in place to prevent excessive toll imposition on users and ensure fair pricing mechanisms.

Minister Gadkari assured that after further discussions and stakeholder consultations, a revised toll policy would be introduced to rectify existing issues and implement a more equitable system for users. The objective is to provide fair concessions while eliminating common grievances associated with toll payments.

In the financial year 2023-24, India’s total toll collection amounted to Rs 64,809.86 crore, marking a 35% increase from the previous year. This surge indicates the growing dependence on highway infrastructure and the necessity of optimizing toll collection systems.

Regarding the adoption of satellite-based tolling, Gadkari noted that while the Navigation with Indian Constellation (NavIC) system has been identified as a potential solution, its implementation requires additional satellite networks and the development of specialized receivers for precise location tracking. Expert committees have proposed a phased approach, suggesting the implementation of corridor-based projects utilizing automatic number plate recognition (ANPR) and FASTag for seamless, barrier-free tolling in the near future.

The proposed reforms in toll policy reflect the government’s commitment to modernizing India’s highway infrastructure while addressing user concerns. By introducing cost-effective tolling options, integrating advanced technologies, and ensuring efficient revenue collection, the government aims to create a smoother, faster, and more user-friendly highway experience for all commuters. The final details of the revised toll policy are expected to be unveiled soon, following thorough consultations with all stakeholders.

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