Government to Implement New Toll Policy Next Month?

Key Proposed Changes & Discussions:

  • Barrier-Free Tolling: The government is actively moving towards a barrier-free tolling system using Automatic Number Plate Recognition (ANPR) technology, often integrated with FASTag. This aims to eliminate the need for vehicles to stop at toll plazas, ensuring smoother and faster traffic flow.
  • GPS-Based Tolling: The National Highways Authority of India (NHAI) is reportedly planning to replace the FASTag system with an advanced GPS-based toll collection technology starting May 1, 2025. This system will track the actual distance traveled on national highways using satellite navigation and deduct toll fees accordingly from linked bank accounts or UPI.
  • Pay-Per-Kilometer System: The new policy is expected to shift towards charging vehicles based on the actual kilometers traveled instead of a fixed rate at toll plazas. For instance, some reports suggest a rate of around ₹50 per 100 kilometers for cars.
  • Annual Pass: A significant proposal is the introduction of an annual toll pass for private vehicles at a one-time cost of around ₹3,000. This pass could allow unlimited travel on national highways, expressways, and even state highways for a year.
  • No Lifetime Pass (for now): While there were earlier discussions about a lifetime pass, it seems this proposal has been dropped, and the focus is currently on the annual pass.
  • FASTag Integration (for the interim): For the proposed annual pass, payments are expected to be made through the existing FASTag system. However, with the potential shift to GPS-based tolling, the role of FASTag might evolve.
  • Compensation to Concessionaires: The government is considering how to compensate existing concessionaires and contractors whose agreements might not have provisions for the new policies like the annual pass. Digital records of vehicle movement will likely be used to calculate the difference between actual recovery and claims.
  • Unified FASTag and Sensor System: Efforts are on to implement a unified system for installing FASTags and sensors to ensure quicker recognition of vehicles at toll points during the transition.
  • Toll Rate Revisions: It’s important to note that the NHAI also undertakes regular revisions of toll rates, typically linked to inflation (Wholesale Price Index – WPI). A 4-5% increase in toll tax across 855 national highway toll plazas reportedly took effect from April 1, 2025.

Expected Benefits:

  • Reduced Congestion: Barrier-free and GPS-based tolling aims to significantly reduce waiting times at toll plazas.
  • Fairer Pricing: Pay-per-kilometer charges ensure users pay only for the distance they travel.
  • Cost Savings for Frequent Travelers: The annual pass is expected to provide substantial relief for regular highway users.
  • Increased Efficiency: Digital toll collection methods reduce the scope for human error and promote transparency.
  • Environmental Benefits: Reduced congestion can lead to lower fuel consumption and emissions.

Key Dates and Considerations:

  • April 1, 2025: A 4-5% increase in toll tax was implemented across many national highways.
  • May 1, 2025 (Expected): The rollout of the GPS-based toll collection system is anticipated.
  • The exact implementation timeline for the new annual pass and the full transition to barrier-free tolling are still being finalized.

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