New Delhi: The Ministry of Road Transport and Highways (MoRTH) has approved a proposal to exempt tolls on national highways with fewer than four lanes. The proposal, along with another plan to introduce an annual travel pass for private car users, has been forwarded to the Ministry of Finance for final approval.
According to reports, the toll exemption will apply to two-lane and two-and-a-half-lane highways with paved shoulders, where the toll charges are already 60 per cent lower than four-lane highways.
In contrast, the proposed annual pass priced at around Rs 3,000 could lead to a marginal drop in revenue and hence requires clearance from the Department of Expenditure.
Earlier, Union Minister Nitin Gadkari had mentioned plans to introduce both annual and lifetime toll passes for private vehicles. However, officials noted that the ministry chose to proceed with only the annual pass, as it stands a better chance of widespread adoption.
Gadkari has repeatedly indicated that highway commuters can expect “major relief” soon and has assured that these measures would eliminate most of the existing grievances.
Data from FY2024- 25 shows that India collected about Rs 61,000 crore in toll revenue, with only 20 to 21 per cent coming from private cars and the remaining 79 to 80 per cent generated by commercial and heavy vehicles.
This disproportion supports the idea that easing tolls for private car owners would have a limited fiscal impact but substantial public benefit.
Meanwhile, India is on the verge of transitioning from the FASTag toll collection system to a more advanced, satellite-based model known as the Global Navigation Satellite System (GNSS).
Initially slated for a 1 April rollout, the project was delayed due to the government’s decision to wait for the full activation of India’s own navigation satellite constellation for enhanced precision.
At a recent event in Nagpur, Minister Gadkari confirmed that the GNSS tolling system will be launched within the next 15 days. This system aims to revolutionise toll collection by eliminating toll plazas. Instead, users will be charged based on the actual distance travelled, with tolls automatically deducted from a linked digital wallet.
The GNSS system utilises GPS and India’s GPS-Aided GEO Augmented Navigation (GAGAN) to track vehicles accurately. While Fastag reduced waiting time at toll booths, GNSS promises a completely seamless experience by removing the need to stop altogether. Trials are already underway on select routes such as the Bengaluru-Mysore and Panipat-Hisar highways.
Initially, GNSS will work in tandem with the existing FASTag infrastructure. Select toll lanes are being retrofitted to support the new system, with a nationwide scale-up expected as adoption increases.
The system also aims to address long-standing issues like toll evasion and overcharging, while improving revenue collection accuracy.
