FASTag might soon be a thing of the past, with the government preparing to introduce new technology for toll revenue collection.
The central government intends to levy toll taxes using GPS satellite technology. Sources claim that a pilot project to test the new method is currently underway in India.
According to this system, the toll would be paid based on how many kilometres a car travels on a highway. So, a person will essentially have to pay a toll based on the distance they traverse on a highway or expressway.
Nitin Gadkari, the Union Minister for Road Transport and Highways, stated earlier this year, in March, while speaking in the Lok Sabha, that the government would eliminate toll plaza booths nationwide within a year.
Additionally, he stated that toll booths would be completely replaced with a GPS-based toll collection system. He added that tolls would be collected via GPS imaging on moving vehicles.
Right now, the toll fee is calculated based on how many kilometres a vehicle travels on a highway.
However, due to the success of the GPS-based approach in European countries, steps are being made to adopt it in India as well. The pilot project is being tested.
Currently, the toll is collected for the entire distance from one toll plaza to another. Even if a vehicle isn't travelling the entire distance but finishing its journey in a different location, the toll must be paid in full.
In Germany, most vehicles have satellite navigation systems installed. When a vehicle enters a tolled area, the tax calculation begins.
The toll for the distance travelled is deducted from the account as soon as the vehicle transitions from an expressway to a road without a toll.
The transport policy must also be altered before implementing the new system. In the pilot scheme, 1.37 lakh automobiles have been covered nationwide.
FASTags, which were introduced in 2016, make it easier to pay fees at toll booths electronically.
Making the tags compulsory would also help to guarantee that traffic moves smoothly through the toll plazas because the toll would be paid electronically.