Nitin Gadkari announcement : Now toll-tax collection will be done through GPS

Nitin Gadkari
Nitin Gadkari

New Delhi : The landscape of toll-tax collection is on the brink of a major transformation, thanks to the innovative approach by the Indian government. By March next year, the conventional toll plazas on national highways will witness a paradigm shift as the GPS-based toll collection system takes center stage.

The Need for Change

Minister Nitin Gadkari, in a recent announcement, highlighted the government’s intent to streamline traffic on highways and ensure accurate toll collection based on the precise distance traveled by vehicles.

Automatic Toll Collection

Gadkari revealed plans for nationwide deployment of GPS satellite-based toll collection starting March 2024. This automated system aims to eliminate the hassle of stopping at toll plazas, enabling seamless toll collection through GPS technology.

Cutting-Edge Technologies

The government is not just stopping at GPS-based tolling. Two pilot projects employing automatic number plate recognition systems are also in progress, allowing for toll collection without vehicle stops.

Easing Traffic Woes

Waiting times at toll plazas have been a longstanding issue. Gadkari assured that the new system would significantly reduce these wait times, addressing a common concern among commuters.

Political Initiatives

In a bid to kickstart infrastructure projects, the government is set to invite bids for road projects under the “Build-Operate-Transfer” (BOT) model. This move is expected to inject substantial funds into the sector, with the likelihood of general elections in April-May 2024.

How GPS Toll Collection Works

The GPS-based system calculates toll taxes based on the exact distance covered by vehicles. This groundbreaking technology utilizes automatic number plate recognition systems to seamlessly collect tolls without stopping vehicles at toll plazas.

Mandatory GPS Installation

To ensure the success of this initiative, all vehicles, including new ones, will be required to have GPS trackers installed. The transport department will issue registration numbers based on GPS tracking, and automobile companies will make GPS installation mandatory.

Fast-Tag Wallet Essentials

Users must maintain sufficient balances in their Fast-Tag wallets to ensure smooth toll transactions. Failure to recharge within the specified time may result in the temporary blocking of the Fast-Tag.

Benefits and Challenges

While the new system promises efficiency and reduced congestion, adapting to the mandatory GPS installation and understanding the nuances of Fast-Tag usage may pose initial challenges for vehicle owners.

Change in toll-tax collection

As we approach this revolutionary change in toll-tax collection, commuters can anticipate a smoother and more efficient journey on national highways. The integration of GPS technology not only aligns with global trends but also reflects a commitment to leveraging innovation for the benefit of the public.


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