FASTag not going anywhere, but barrier-less tolling system soon: What is it and how will it work?

The Ministry of Road Transport and Highways on Friday clarified that the FASTag-based toll collection system will continue to remain in place, even as steps are being taken towards introducing a barrier-less tolling mechanism to improve traffic movement at toll plazas.

Dismissing reports that the existing FASTag-based system would be replaced by a satellite-based tolling mechanism from May 1, the government said no such nationwide implementation has been planned.

Earlier this week, Union Road and Transport Minister Nitin Gadkari said, “In next 15 days we are coming with toll policy and you will satisfy from our toll policy (National Highways). We are starting satellite toll system so that you don't have to stop for toll plazas...”

His comments sparked speculation that a new GPS-based tolling system would roll out from next month.

However, in a statement issued on Friday, the ministry clarified, “No such decision has been taken by the Ministry of Road Transport and Highways or National Highways Authority of India (NHAI) regarding the nationwide implementation of satellite-based tolling from 1st May 2025.”

Barrier-less tolling system

Instead, the ministry announced the launch of an ‘ANPR-FASTag-based Barrier-Less Tolling System’ at selected toll plazas as part of its efforts to "enable seamless, barrier-free movement of vehicles" and "reduce travel time."

The system will integrate Automatic Number Plate Recognition (ANPR) technology with the existing FASTag infrastructure that uses Radio-Frequency Identification (RFID) for toll deduction.

High-performance ANPR cameras and FASTag readers will together identify vehicles and deduct tolls automatically, eliminating the need for vehicles to halt at toll booths.

“In case of non-compliance, E-Notices will be served to the violators, non-payment of which may result in suspension of FASTag and other VAHAN related penalties,” the ministry said.

NHAI has invited bids for the implementation of the system, and its wider rollout will depend on its performance, operational efficiency, and user feedback.

FASTag, which uses Radio-Frequency Identification (RFID) technology, was made mandatory for vehicles across India in 2021.