India’s highways have been a symbol of the country’s growing infrastructure, but as toll rates are set to triple, the cost of using these highways will soon hit commuters’ wallets even harder. The Indian government has announced a significant overhaul in its toll collection system, aiming to increase efficiency and reduce revenue leakages, with projections of generating up to ₹1.5 lakh crores annually.
What’s Changing?
The most notable change is the introduction the Global Navigation Satellite System (GNSS) for toll collection, replacing the current Fastag system. This shift towards satellite-based toll collection is part of a broader initiative to modernize infrastructure and plug the existing loopholes in toll collection. Under this new system, tolls will be automatically deducted based on the distance traveled, as tracked via satellite, eliminating the need for traditional toll booths.
Key Features of the New System
1. Satellite-Based Toll Collection (GNSS): The government has launched a pilot project using GNSS, which will track vehicle movement via satellite and deduct tolls directly from an account linked to the vehicle. This method promises to be more precise and efficient, ensuring no vehicle can bypass toll payments.
2. On-Board Units (OBU): Vehicles will need to be equipped with an OBU, which will interact with satellites to calculate and deduct tolls based on the kilometers driven. Initially, this will be implemented for private vehicles with GNSS-enabled technology.
3. 20 km Exemption Rule: The government has amended the toll collection rules to exempt vehicles from paying tolls for the first 20 kilometers of their journey. However, this benefit will only apply to vehicles equipped with the GNSS system. If the journey extends beyond 20 km, tolls will be charged for the entire distance, including the first 20 kilometers.
From Fastag to Satellite Tracking
The Fastag system, introduced a few years ago, will gradually be phased out as satellite-based tolling becomes the standard. The government had already made Fastag mandatory for all vehicles, and a similar rollout is expected for GNSS. Initially, Fastag was promoted with incentives like cashback offers, but as its adoption became widespread, these benefits were withdrawn, and toll rates increased. A similar pattern is expected with the GNSS-based system.
Highways and Toll Expansion
India has the second-largest road network globally, with more highways being constructed each year. The government expects toll collections to increase significantly with the GNSS system, as it reduces the potential for toll evasion. While this system ensures transparency, it is also designed to maximize revenue collection. As new highways and expressways are built, toll rates are expected to rise accordingly, placing a heavier burden on commuters.
Concerns and Criticism
While the new system promises efficiency, many commuters are concerned about the rising toll rates. For frequent travelers and those living near toll plazas, the cost of using highways could become prohibitively expensive. Despite the 20 km exemption rule, travelers argue that high toll rates, combined with frequent toll points, could make daily commutes financially unsustainable.
Additionally, there are concerns about the longevity of the toll system itself. Several highways, such as the Jaipur-Delhi expressway, have collected far more revenue than initially projected, yet tolls continue to be imposed. Transparency regarding how long tolls will be collected after construction costs are recovered remains a key issue for the public.
Conclusion
The shift to satellite-based toll collection marks a significant step in modernizing India’s infrastructure, but it also brings new challenges. While the government aims to plug revenue leaks and increase collections, commuters are bracing for higher costs. As the GNSS system is rolled out, it remains to be seen how effectively it can balance technological advancement with the economic realities faced by everyday highway users.
This new system will reshape how tolls are collected, but it also raises important questions about the fairness and transparency of toll rates on India’s expanding highway network.
