Centre to introduce satellite-based toll system: How will it be different from FASTag? Check details

Written By Shivam Verma | Updated: Jul 28, 2024, 03:48 PM IST

The new system will use the Global Navigation Satellite System (GNSS) and will initially be implemented on select National Highways

The Central government is set to introduce a new satellite-based toll collection system, replacing the current method. Union Road Transport and Highways Minister Nitin Gadkari announced that this new system will make India's National Highways similar to those in the United States.

The new system will use the Global Navigation Satellite System (GNSS) and will initially be implemented on select National Highways. Under this system, toll fees will be deducted directly from the driver's bank account based on the distance travelled.

Gadkari highlighted that this method will be both cost-effective and efficient, saving time and fuel for travellers.

Unlike the existing FASTag system, which requires vehicles to stop at toll booths for RFID scanners to read a sticker on the windshield, the GNSS system will function with virtual toll booths. These virtual booths will communicate with satellites to track the vehicle's location and calculate the toll based on the distance covered. This means vehicles will no longer need to stop, reducing congestion and wait times at toll booths.

Despite the introduction of the GNSS system, the government will continue using the FASTag system to ensure a smooth transition. This will prevent any immediate inconvenience to users who are currently relying on FASTag. In the FASTag system, users must maintain a pre-paid balance for toll deductions when passing through toll booths.