No more waiting! India’s highways to go GPS based toll collection soon – Here’s what changes | Auto News

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India will begin GPS-based toll collection soon, replacing the FASTag system. NHAI has invited bids for the implementation of ‘ANPR-FASTag-based Barrier-Less Tolling System’ that will be installed at selected toll plazas. The new satellite-backed tolling will charge vehicles based on kilometres travelled, reducing wait times and fuel use. Highway travel is about to get quicker and more transparent for all.

Say Goodbye to Flat Toll Fees: GPS Tolling to Make Highway Rides Cheaper in India! | Credit: Andrew Woodley/Education Images/Universal Images Group via Getty Images

India is set to switch gears on how tolls are collected on national highways. The National Highways Authority of India (NHAI) will begin rolling out a GPS-based toll system soon, gradually replacing the existing FASTag setup.

This move is aimed at reducing highway congestion, improving toll transparency, and cutting down vehicle idle time at toll plazas — all while using satellite-backed tracking technology already in place across the country. NHAI has invited bids for the implementation of ‘ANPR-FASTag-based Barrier-Less Tolling System’ that will be installed at selected toll plazas.

How the GPS-based toll system works

Instead of slowing down at toll booths, vehicles will be tracked using satellite systems like NavIC and GAGAN. An On-Board Unit (OBU) installed in each vehicle will communicate with these systems and record how many kilometres were driven on national highways. Based on that data, toll charges will be automatically deducted from the user’s bank account.

ANPR (Automatic Number Plate Recognition) cameras will also be installed to help with vehicle detection and ensure smooth billing. According to government sources, this model is already in use across Europe and aims to bring Indian highways up to global standards.

What changes for FASTag users?

For now, FASTag remains valid, once the GPS toll system comes in action vehicle owners will need to:

• Install a government-approved GPS device (OBU)
• Link it to a valid bank account
• Remove their existing FASTag sticker once onboarded

The transition will follow a hybrid format initially — at selected toll plazas some lanes will continue using FASTag while others will be GNSS-based, but the goal is to phase out toll booths entirely over time.

Why the switch matters

GPS based toll system offers real benefits for everyday drivers and the environment too:

• No stopping at toll booths – Vehicles keep moving, avoiding fuel waste
• Pay per kilometre – Fair tolling based on actual travel distance
• Reduced emissions – Less idling at toll gates means lower pollution
• Fewer toll disputes – Everything is tracked digitally, which brings billing transparency

Roheen Ghosh

Roheen is an enthusiast for all things sports and motoring. He regularly follows football and cricket and immerses himself in the tactical intricacies of the game and keeps his eye on the automotive industry’s development.

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