FASTags, which have been in use since 2016, will soon be replaced by the new toll collection the Global Navigation Satellite System (GNSS). Technical issues at toll plazas caused delays and long lines, even though FASTags have sped up toll transactions. In addition, the system has experienced several issues and complaints, necessitating a more effective upgrade.

Thus, commencing on May 1, 2025, the Central government will implement a new GPS-based toll collection system, making road travel even more convenient.

In light of this, the National Highways Authority of India (NHAI) is preparing to replace the popular FASTag system with a cutting-edge satellite-backed model that determines tolls based on a vehicle's distance travelled.

The GNSS-based system will be implemented by the end of April, according to a recent confirmation from Union Minister Nitin Gadkari in Nagpur. It was initially scheduled to launch on April 1st, but there were some delays. The Centre now intends to start the rollout in the upcoming 15 days.

How GNSS based toll system operates

GNSS tracks vehicle movement via satellite, much like the FASTag, which uses RFID technology and necessitates a tag on the windshield.

Vehicles equipped with a tracker or on-board unit (OBU) will have their precise highway usage tracked. Additionally, the toll fees will be automatically deducted from a linked digital wallet after being calculated based on the distance travelled.

Both prepaid and postpaid billing options should be supported by the new toll collection system.

Why is such an Implementation:

Although FASTag has experienced numerous technical issues, it has contributed to a reduction in toll booth wait times. The primary problems were long lines, technical difficulties, and tag abuse. The NHAI is currently preparing to transition to a satellite-backed toll system to resolve these technical difficulties.

How commuters to get benefitted from this toll system:

• By eliminating the need to pause at booths, it will reduce waiting times.
• It will lower the chance of fraud and stop manual errors.
• It will make driving smoother and contactless.

Now FASTag users need to be aware of:

• Use FASTag until April 30, 2025.
• Install a GPS unit that has been approved by the government in your car starting on May 1.
• Link your bank account to the new system after that. Once you've been fully onboarded, take off your FASTag sticker.

Why Toll is there?

Toll is a fee collected for the use of the road, bridge, tunnel, etc. to recover the total capital outlay. It includes interest on outlay, cost of repairs, maintenance and also expenses on collection of toll.

Hence the amount of toll should not exceed the benefits which the user receives while using the toll road. However, the new facility thus constructed should provide reduced travel time and increased level of service.

In India most of the highway projects are given on PPP basis, i.e. Public Private Partnership. In this the private organization finances and constructs the facility and recovers the capital from the users in the form of toll tax.

This tax is collected for a reasonable period of time after which the facility is surrendered to the public. Of late, toll tax is being levied on parking of vehicles in the urban centers in a move to decongest the streets and reduce the pollution levels. This concept is known as Congestion Pricing.

There are two types of toll collection systems – (i) Open Toll System, and (ii) Closed Toll System.

In an open toll system, not all patrons are charged a toll. In such a system, the toll plaza is generally located at the edge of the urban area, where a majority of long-distance travelers are committed to the facility, with a minimum likelihood of switching to the parallel free route, or at the busiest section of the toll way.

Patrons are identified by their category and pay a fixed toll for it. The local traffic around the plaza either gets rebate or can use a service lane.

In a closed toll system, patrons pay the toll based on miles of travel on the facility and category of vehicle. There are no free-rides. In a closed toll system, plazas are located at all the entry and exit points, with the patron receiving a ticket upon entering the system. Upon exiting, patron surrenders the ticket to the collector and is charged a prescribed fee based on category of vehicle and distance travelled. It has just two stops for the vehicles whereas open system can have multiple stops.

There are three methods of toll collection available. These are: (i) Manual, (ii) Automatic, and (ii) Electronic.

Manual Toll Collection

It is most widely used collection method in India. It requires a toll collector or attendant. Based on the vehicle classification, cash toll is received by the collector. The collector, who also dispenses change, may accept and sell scrip, tickets, coupons, making an entry of the vehicle in the system and issuing receipt to the patron. Due to manual intervention, the processing time is highest.

Automatic Toll Collection: It is based on the use of Automated Coin Machine (ACM). These accept both coins and tokens issued by the operating agency. Depending on the toll rate, the use of automated coin or token collection instead of manual collection reduces transaction and processing time as well as the operating cost.

Electronic Toll Collection (ETC): It is a system that automatically identifies a vehicle equipped with a valid encoded data tag or transponder as it moves through a toll lane or checkpoint. The ETC system then posts a debit or charge to a patron’s account, without the patron having to stop to pay the toll. ETC increases the lane throughput because vehicles need not stop to pay the toll.