Satellite-based system to collect tolls on highways

Traffic jams at toll plazas on national highways and expressways are soon going to be resolved. A satellite-based system for toll collection is set to be introduced in the country. To implement this arrangement, the Indian Highways Management Company, a unit of the Ministry of Road Transport and Highways, has invited bids from global firms. How will the satellite-based toll collection system work? How different is it from the existing system? What are the benefits of the new system? Let’s understand.

The government plans to implement the satellite system in phases. In the first phase, toll collection from commercial vehicles will be done through the Global Navigation Satellite System (GNSS). Subsequently, toll collection from private cars, jeeps, and vans will be done through this system. The government aims to implement this plan nationwide in the next two years.

The satellite-based toll system is a means to alleviate the issues of electronic toll collection. Through this system, toll will be collected based on distance traveled by the vehicle on the road. For example, if a person enters at Meerut on the Meerut Expressway and exits at Indirapuram in Ghaziabad, they will be charged for the distance travelled. For this, modern cameras will be installed at all entry and exit points of highways, which will be able to read the vehicle’s number plate. The toll amount based on distance will be deducted from the vehicle owner’s bank account. The government’s aim with this initiative is to eliminate physical toll plazas and make travel smoother for people.

Under the current system, toll collection is being done via Radio Frequency Identification (RFID). This system was initiated as FASTag in 2015. In February 2021, FASTags were made mandatory for toll collection at national highway toll plazas. Currently, toll collection is being done on approximately 45,000 kilometers of national highways and expressways through 1200 toll plazas established by NHAI and other agencies. In the fiscal year 2023-24, the government has collected toll revenue of Rs. 54,750 crores. With the implementation of the new system, toll collection is estimated to reach up to Rs. 1.4 lakh crores in the next two to three years.

With the introduction of the satellite system, existing toll plazas will become history. There will be virtual tolls in the satellite toll system, but they won’t be visible to you. As soon as the vehicle passes through the exit point, the amount will be deducted from the owner’s bank account. The government believes that the satellite system will save both time and money for people. However, the government may face various challenges in implementing the new system.