The Indian government has collected a staggering US$17.05 billion (Rs. 1,44,000 crore) in toll taxes from fee plazas operating under the Public Private Partnerships (PPP) model on National Highways since its introduction in December 2000. This toll collection model, regulated under the National Highways Fee (Determination of Rates and Collection) Rules, 2008, and the respective Concession Agreements, has significantly contributed to the funding of highway infrastructure in the country. The revenue generated from these toll fees has played a vital role in maintaining and expanding India's road infrastructure network, especially under the PPP framework.

In a recent statement to the Lok Sabha, Union Minister of Road Transport & Highways, Mr. Nitin Gadkari, outlined the government's plans to move towards barrier-free tolling using advanced technologies like the Electronic Toll Collection (ETC) system and FASTag. These steps are aimed at creating a smoother and more efficient toll collection process across India’s National Highways, reducing congestion and enhancing user experience.

However, while the current systems like FASTag are already operational across various toll booths, the Global Navigation Satellite System (GNSS)-based tolling system is still under development. The government has amended the National Highways Fee Rules, 2008 (dated September 9, 2024) to facilitate the implementation of GNSS-based tolling through On-Board Units (OBUs) in vehicles. This system will enable toll charges to be calculated based on the distance travelled on National Highways, replacing the current system that charges based on the length of the toll plaza.

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Once the GNSS tolling system is operational, vehicles that do not possess a valid GNSS OBU will be subjected to double the applicable user fee for their respective category, making the system a key step in reducing inefficiencies in toll collection. This new model is expected to bring greater accuracy and fairness to toll charges while making the tolling process more transparent.

The transition to a barrier-free tolling system is in line with global trends toward smart transportation systems, leveraging advanced technologies to enhance road user convenience and efficiency. It is expected to significantly reduce the need for physical barriers at toll booths, contributing to smoother traffic flow and reducing the environmental impact of congestion.

In conclusion, the government’s move towards barrier-free tolling with GNSS-based technology is a forward-thinking initiative aimed at modernizing India's toll collection infrastructure. The success of this initiative will depend on the widespread adoption of FASTag and the upcoming GNSS OBUs, which will ensure that toll charges are based on the actual distance travelled rather than fixed fee structures. This change, once fully implemented, will represent a significant step in India’s efforts to modernize its highway infrastructure and improve road safety, all while providing more convenient options for drivers.

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