India to launch GPS-based toll collection system from May 1, phasing out FASTag

India to launch GPS-based toll collection system from May 1, phasing out FASTag

Mangalore Today News Network

New Delhi, April 28, 2025: In a significant leap toward modernizing India’s highway infrastructure, the ministry of road transport and highways is set to launch a GPS-based toll collection system starting May 1, gradually phasing out the existing FASTag model.

Union minister Nitin Gadkari recently confirmed that the new toll policy would be rolled out across the country within 15 days. The upgraded system promises a more efficient and time-saving approach to toll payment, aligning with global best practices.

Unlike the current fixed-rate FASTag system, the GPS-based model charges motorists strictly based on the distance travelled on toll roads. Vehicles will be equipped with on-board GPS devices, monitored via the Global Navigation Satellite System (GNSS). The distance covered will be calculated in real-time, and toll charges will be automatically deducted from users’ linked digital wallets.

One of the major benefits of the new system is the elimination of physical toll booths, which is expected to significantly ease traffic congestion and reduce delays. The real-time tracking feature is also aimed at minimizing billing errors, improving accuracy and transparency in toll collection.

Initially slated for rollout on April 1, the launch was delayed due to a strategic shift from the US-based GPS to India’s indigenous GNSS technology, currently under development for nationwide implementation.

The system was first announced in June 2024, with the National Highways Authority of India (NHAI) entrusted with its execution. In the first phase, the GPS-based toll system will be deployed on commercial vehicles such as trucks and buses. Private cars and smaller vehicles will follow in the second phase.

This transition marks a milestone in India’s journey towards intelligent transportation systems, offering motorists a seamless and fair tolling experience.