End of FASTag Era: India Shifts to GPS-Based Toll System from May 1

India's highway toll collection system is being overhauled on a massive scale, with the government announcing the phasing out of FASTag in favor of a GPS-based model from May 1. Union Minister Nitin Gadkari announced that the new policy will help remove toll plaza bottlenecks and ease payments through the use of advanced satellite technology.

How the GPS Toll System Works

The vehicles will have an on-board unit (OBU)—a tool using Global Navigation Satellite System (GNSS) technology to record actual movement. While a vehicle is on the highways, the OBU will track the covered distance, and the toll charges will be electronically withdrawn from the driver's connected bank account or digital wallet. The "pay-as-you-drive" system eliminates the requirement of physical toll plazas to ensure hassle-free travel.

The system will first be implemented on commercial vehicles such as trucks and buses before being extended to private vehicles. It will run on India's NavIC satellite network, providing data security and minimizing dependence on foreign GPS systems.

Why Replace FASTag?

Launched in 2016, FASTag applies RFID technology to facilitate contactless toll payment. It curbed waiting time, but scanner faults, jams, and tag misuse continued to pose problems. The GPS-based system erases these defects by charging users precisely for what they have actually driven through, ensuring fairness and efficiency.

The minister stressed that the new policy would address public complaints, which he described as a "transformational step" for Indian highway infrastructure. More details like pricing and the OBU fitting protocol, are pending.