New FASTag system could boost toll revenues by ₹10,000cr annually
What's the story
Union Road Transport and Highways Minister Nitin Gadkari has announced that India's electronic tolling system, FASTag, has been a game changer in making toll collection more seamless and efficient. Speaking at the Global Fintech Fest (GFF) in Mumbai on Friday, Gadkari said that the government is preparing to transition to a completely barrier-free highway tolling system by integrating FASTag with vehicle number-plate recognition technology to further enhance this system.
System evolution
Government's shift to tech-driven tolling system
Launched in 2016, FASTag was part of the government's effort to modernize toll payments and improve the experience at toll plazas.
The system became mandatory in 2021, paving the way for a nationwide shift from cash-based payments to electronic toll collection on national highways.
Now, Gadkari has revealed plans to integrate FASTag with vehicle number-plate recognition technology as part of a more tech-driven tolling system.
Revenue impact
Proposed system could boost toll revenues
Gadkari said the new system, which would use both FASTag and number plates, could lead to an annual increase of ₹10,000 crore in toll revenues.
The proposed system is expected to strengthen toll collection by using both FASTag data and vehicle number plates.
This could improve the identification and tracking of vehicles on tolled stretches.
System efficiency
Importance of digital technologies in transport infrastructure
FASTag employs radio-frequency identification technology to automatically deduct toll charges from a linked account as vehicles pass through toll plazas.
Its adoption has reduced reliance on cash payments and helped streamline toll collection.
Gadkari's remarks at the fintech conference highlight the increasing importance of digital technologies in India's transport infrastructure.