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Writer's pictureRicha Shetty
Feb 10, 20213 min read

Indian Government Brings out New GPS-Based Toll Collection System; No Toll Booths In 2 Years

The Union Minister Nitin Gadkari says that with the GPS-based system the toll amount will be deducted directly from the bank account of vehicle owners, based on the movement of vehicles. With a GPS-based system, the toll income in the next five years will reach Rs. 1,34,000 crore

  • GPS-based toll collection system cleared, says Nitin Gadkari

  • Toll amount to be deducted directly from the bank account of the user

  • Toll income will reach Rs. 1,34,000 crore in 5 years with GPS tech

In this article, we will walk you through What is FASTag and How does it work? Will it be mandatory? Implementation, and Top 10 most important benefits of FASTag.

Indian Government Brings out New GPS-Based Toll Collection System; No Toll Booths In 2 Years

Will FASTag help India becoming a Toll Booth Free Nation:

The Union Minister of Road Transport & Highways and MSMEs, Nitin Gadkari, has announced that the Government of India has cleared the use of GPS-based for toll collection in the country. Gadkari says that this move will ensure seamless movement of vehicles across the country, and it will also help India becomes a 'toll booth free' nation in the next two years. The Union Minister further added that with the GPS-based system the toll amount will be deducted directly from the bank account of vehicle owners, based on the movement of vehicles.

What is FASTag?

FASTag is a radio frequency identification device (RFID), which comes as a reloadable tag that ensures a seamless movement of a vehicle on the run on highways. The device has to be registered with Central Clearing House (CCH) operators and the bank account first. And then, it needs to be placed on the vehicle’s windscreen. When the vehicle passes through a toll plaza, the sticker or tag is auto-scanned and payment is instantly deducted from a prepaid account linked to the tag.


How will the GPS Based System FASTag work:

Nitin Gadkari says with the GPS-based system the toll amount will be deducted directly from the bank account of vehicle owners. The announcement was made while Nitin Gadkari was addressing the ASSOCHAM Foundation Week Programme, sharing his views on the theme 'National Infrastructure Pipeline critical for economic revival across sectors. Here are the Top 5 Benefits of GPS Fleet Tracking for the Transportation Industry


Will It Be Mandatory for all Four-Wheelers:

In his statement, Gadkari said that he expects toll collections to reach ₹ 34,000 crores by March 2021. At the same time, he also added that by using GPS technology for toll collection, the Government's toll income in the next five years will be ₹ 1,34,000 crore. Gadkari also said that while all new commercial vehicles are coming with vehicle tracking systems, the Government will need to come up with some plan to install GPS technology in old vehicles the have a widespread effect. The government has said that FASTags will be mandatory for all four-wheelers from January 1, 2021

Implementation of FASTag:

At the moment, the Ministry of Road Transport and Highways (MoRTH) is working towards making FASTags mandatory for all four-wheelers from January 1, 2021. This is to promote digital and IT-based payment of fees for toll collection and it will be compulsory even for old vehicles that are sold before December 1, 2017. FASTag is a prepaid tag that makes automatic deduction of toll charges that is operated by the National Highway Authority of India (NHAI). The step taken by the central government will ensure payment of fees is done at the toll booths via electronic means only, which will make vehicle passing a seamless process through toll plazas. Here is How to Check Driving License Application Status Online in India?

Contact us for a quick demo or 14-day trial to know more about our Pay As You Drive India and how we can help in connecting your assets in real-time to the internet in India. Visit our FAQ page for some frequently asked questions on fleet management.





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