New Delhi, April 17: India’s national highways are gearing up for a major shift in toll collection as the government prepares to roll out a Global Navigation Satellite System (GNSS)-based tolling mechanism from May 1, 2025, replacing the existing FASTag system.
Union Minister for Road Transport and Highways Nitin Gadkari confirmed the development on Tuesday. “In the next 15 days, we are coming with a toll policy that will satisfy all highway users,” Gadkari said. “We are starting the satellite toll system so that you don’t have to stop at toll plazas,” he added.
Originally slated for implementation on April 1, the GNSS system’s rollout was delayed but is now expected to begin next month, marking a significant upgrade in how tolls are collected.
How GNSS Works
The GNSS-based tolling system uses satellite technology to calculate toll charges based on the exact distance a vehicle travels on national highways. The amount will be automatically deducted from the user’s linked bank account, making the process faster, more efficient, and cost-effective.
Officials say this system will replace the need for physical toll booths altogether, using virtual tolling points and real-time vehicle tracking via satellites to determine the toll fee.
Key Difference from FASTag
While FASTag already sped up toll payments compared to cash transactions, it still requires vehicles to slow down or stop at toll plazas — a process that often results in congestion during peak hours.
Also, the GNSS model eliminates stopping altogether. “This will significantly reduce travel time and fuel consumption,” an official from the Ministry of Road Transport and Highways said.
Apart from improving traffic flow, the system is also expected to offer flexible payment models, reducing infrastructure costs for the government and offering convenience for commuters.
