Key Points
- India will launch a GPS-based toll collection system (GNSS) from May 1, 2025, replacing the FASTag model.
- The new system calculates tolls based on the exact distance traveled, using satellite tracking and on-board units (OBUs) in vehicles.
- GNSS promises seamless, contactless travel eliminating toll plazas, reducing congestion, and ensuring fairer, more transparent toll charges.
- The rollout begins with commercial vehicles and new passenger cars; all FASTag users must transition to GNSS by April 30, 2025.
- The move addresses issues of fraud, manual errors, and long queues associated with FASTag, and is expected to cut emissions by reducing idling at toll booths.
New Delhi: India is set to transform its highway travel experience with the nationwide rollout of a GPS-based toll collection system starting May 1, 2025. Spearheaded by the National Highways Authority of India (NHAI), this new Global Navigation Satellite System (GNSS) will phase out the FASTag system and usher in a new era of seamless, satellite-driven tolling.
How the GNSS Toll System Works
Unlike FASTag, which relies on RFID tags at fixed toll plazas, the GNSS model uses satellite technology to track vehicles in real time. Each vehicle will be fitted with an On-Board Unit (OBU) or tracker, linked to India’s indigenous navigation system (NavIC/IRNSS) and GPS. As vehicles travel on national highways, the OBU logs entry and exit points, calculates the exact distance covered, and automatically deducts the toll from a linked digital wallet or bank account supporting both prepaid and postpaid options.
For example, a Delhi-Jaipur trip will only charge for the tolled stretches actually used, and rates will vary by vehicle type (e.g., trucks pay higher per-km fees than cars). Users receive instant SMS or app-based receipts, and the system is designed for accuracy pilot tests have shown 99.2% success rates.
Why Move from FASTag to GNSS?
While FASTag, launched in 2016, digitized toll payments and reduced cash handling, it still required vehicles to stop at toll plazas, leading to congestion, technical glitches, and opportunities for fraud or misuse. Annual losses from tag cloning and non-compliance were estimated at ₹850 crore, and toll plazas accounted for up to 15% of highway congestion. The GNSS system eliminates physical checkpoints, making travel faster and more efficient while ensuring drivers pay only for the distance they travel.
Step-by-Step Rollout and Transition
- Phase 1: Commercial vehicles and new passenger cars will be the first to adopt GNSS, followed by existing private vehicles.
- Transition for FASTag Users: FASTags will remain valid through April 30, 2025. After that, all users must install a government-approved GPS device (OBU), link their bank account, and remove the FASTag sticker from their vehicle.
- Cost and Accessibility: OBUs are expected to cost ₹1,500–2,000 initially, with plans to cap prices at ₹1,000 by 2026. Subsidies and offline payment options will be available for low-income and rural users.
Benefits for Commuters and the Environment
- No more toll plaza stops: Continuous, contactless travel means no more waiting in lines.
- Fair and transparent tolling: Charges are based on actual highway usage, reducing disputes and fraud.
- Reduced congestion and emissions: Smoother traffic flow will help cut down vehicle emissions, supporting environmental goals.
- Enhanced data security: The system employs encryption and privacy safeguards, with oversight from CERT-In.
Addressing Challenges
The government is working to ensure digital inclusion, especially for rural and informal sector users, and to provide robust grievance redressal mechanisms. Data privacy remains a priority, with strict protocols to prevent misuse.
The GNSS-based toll collection system marks a bold leap toward smarter, greener, and fairer road travel in India. As the country prepares for this transition, drivers can look forward to faster journeys, transparent billing, and a future where highway stops are a thing of the past.
