India to Transition to Electronic Toll Collection System by Next Year

Union Minister Nitin Gadkari has revealed plans to replace the current toll collection system with an electronic one within a year. This transition aims to enhance the driving experience on highways by eliminating the need for vehicles to stop at toll plazas. The new system, which has already been initiated in 10 locations, will utilize advanced technologies like Automatic Number Plate Recognition and RFID-based FASTag for seamless toll payments. Gadkari also highlighted ongoing highway projects worth Rs 10 lakh crore across the country, indicating a significant investment in infrastructure.

By Narendra Chaudhary Dec 4, 2025, 18:14 IST

Seamless Toll Collection Ahead

New Delhi, Dec 4: Union Minister Nitin Gadkari announced on Thursday that the existing toll collection system will be phased out within a year, transitioning to an electronic system designed to provide a smoother experience for drivers on highways.

The new electronic toll collection system has already been implemented in 10 locations and is set to expand nationwide within the next year, as stated by the Union Minister of Road Transport and Highways during the Lok Sabha's Question Hour.

"This toll system will be abolished. There will be no personnel stopping vehicles for tolls. An electronic toll collection system will be operational across the country within a year," he remarked.

In a written response to a query, Gadkari revealed that the government plans to introduce innovative strategies for collecting user fees aimed at minimizing congestion, reducing delays at toll plazas, and enhancing the overall experience for users on national highways.

"To improve toll operations and facilitate the smooth flow of vehicles, the government has opted to implement the Multi-Lane Free Flow Electronic Toll Collection system. This system will utilize integrated technologies such as Automatic Number Plate Recognition combined with AI analytics and RFID-based electronic toll collection (FASTag)," he explained.

An official statement recently indicated that the National Payments Corporation of India (NPCI) has created the National Electronic Toll Collection (NETC) program, which serves as a unified and interoperable platform for electronic toll payments, streamlining the toll collection process across India's highways.

At the heart of the NETC initiative is FASTag, a Radio Frequency Identification (RFID) device that is attached to a vehicle's windshield. This device enables automatic toll payments from the user's linked account without the need to stop at toll plazas.

The Minister also mentioned that a request for proposals to implement the FASTag+ANPR/AI barrier-free user fee collection system at selected toll plazas has been issued, with plans to extend it to additional plazas in phases based on the results and effectiveness of the initial implementations.

Gadkari further informed the House that there are currently 4,500 highway projects underway across the nation, with a total investment of Rs 10 lakh crore.