Centre to launch GPS-based toll system from May 1, phasing out FASTag

Guwahati, April 17: In a major step towards smarter and more seamless highway travel, the Central government will introduce a GPS-based toll collection system starting May 1, effectively paving the way for a gradual phase-out of the current FASTag setup.

The new system, based on Global Navigation Satellite System (GNSS) technology, will enable toll charges to be calculated based on the actual distance travelled on highways.

Unlike FASTag, which uses RFID scanners at toll plazas, this satellite-backed model tracks vehicle movement through an on-board unit (OBU), eliminating the need for physical toll booths altogether.

Confirming the development, Union Minister for Road Transport and Highways Nitin Gadkari said on April 14 that a new toll policy will be announced within the next 15 days.

“The Central government will soon introduce a new toll policy. I won’t say much now, but once it is implemented, there will be no reason for anyone to complain about tolls,” Gadkari said during a public event.

The National Highways Authority of India (NHAI) is overseeing the transition and is expected to begin implementing the system by the end of April.

Vehicles equipped with the GNSS-enabled OBUs will have tolls automatically deducted from a linked digital wallet, based on their highway usage. The system will support both prepaid and postpaid billing options, offering flexibility to commuters.

The new model is expected to enhance transparency, reduce congestion at toll plazas, and cut down on fuel wastage — all while offering a fairer, usage-based tolling system.

With inputs from agencies