The Ministry of Road Transport and Highways has formally dismissed media speculation that satellite-based tolling would replace the existing FASTag system from 1 May 2025, stating unequivocally that no such nationwide shift is on the horizon.
In a public statement, the ministry clarified that no official decision has been made to introduce satellite tolling across India, quelling rumours of a full-scale transition from the RFID-enabled FASTag system. The clarification comes amid rising concern among highway users and transport operators following a series of reports that suggested the government was preparing to implement GPS- or satellite-driven toll systems at scale. As it stands, FASTag — the electronic toll collection system introduced to reduce wait times and encourage cashless travel — remains the backbone of India’s tolling infrastructure.
A senior official from the Ministry underscored that while innovation in toll technology is being actively explored, the existing FASTag mechanism remains the only authorised platform for toll collection on national highways. “There is no directive to replace FASTag with satellite-based tolling as of 1 May 2025,” the official confirmed, reaffirming the status quo. Instead, the ministry has shifted focus towards a pilot initiative that integrates Automatic Number Plate Recognition (ANPR) technology with FASTag. This hybrid solution is currently under trial at select toll plazas across the country and aims to deliver a barrier-less tolling experience. By combining high-resolution ANPR cameras and FASTag’s RFID systems, the project is envisioned to facilitate seamless vehicle passage through toll gates without requiring halts, thereby addressing long-standing issues of congestion and fuel wastage.
Experts in the digital mobility sector note that this move is a step toward creating an intelligent transport network. The hybrid ANPR-FASTag model is being viewed as a transitionary step that could eventually pave the way for satellite-based tolling in future — but only once significant technological, regulatory, and infrastructural groundwork is in place. The Ministry has also initiated the process of inviting bids for implementing the ANPR-integrated toll system at select locations. The pilot aims to assess real-time efficiency, cost benefits, and user satisfaction before considering any potential scaling. Officials involved in the project believe that if successfully adopted, this method could reduce the need for physical toll booths, in turn minimising the carbon footprint generated by idling vehicles.
This initiative is aligned with the broader national goals of fostering low-carbon, smart, and sustainable urban and intercity mobility. Barrier-less tolling not only saves fuel but also enhances safety and promotes better route planning, especially for commercial fleet operators. Transport planners believe that reducing delays at toll plazas can significantly improve freight movement and help ease supply chain bottlenecks in high-traffic corridors. The ministry has also issued directives to ensure better compliance with toll payment rules. E-notices will be sent to vehicle owners who evade tolls, and repeated violations may result in FASTag deactivation under the central VAHAN system, which manages vehicle registration and enforcement across India. Officials have urged users to maintain sufficient balance in their FASTag wallets and adopt auto-recharge features through UPI and digital banking channels to ensure uninterrupted service.
As of now, all toll plazas will continue to operate under the ICD 2.5 protocol, which allows for real-time FASTag authentication. This protocol ensures that vehicle tags are verified instantly, enabling smooth passage and efficient data capture. The ministry continues to promote digital tolling adoption and user-friendly innovations through public awareness drives and technical upgrades at toll plazas. The absence of any immediate plans for satellite-based tolling also reflects the government’s pragmatic stance. Satellite tolling systems, while promising, require advanced geofencing, GPS tracking, and enforcement technologies — which are still under development or limited to pilot use in some global cities. Transitioning a country as vast and diverse as India would demand an ecosystem of interoperable technologies, updated regulatory frameworks, and multi-agency coordination.
Transport economists highlight that although India has made rapid progress in digital tolling — with FASTag now used in over 98 percent of toll transactions — a sudden leap to satellite tolling could alienate sections of the population still grappling with digital infrastructure or mobile connectivity challenges. Meanwhile, the emphasis on improving FASTag-based systems is consistent with the government’s broader vision of making highways more efficient, equitable, and eco-friendly. By addressing choke points like toll queues and encouraging digital payments, the ministry aims to reduce vehicular emissions, fuel use, and administrative overhead.
Industry voices have lauded the Ministry’s move to clarify its position, noting that premature announcements or speculation about satellite tolling could have created unnecessary confusion among vehicle owners and logistics firms preparing for fiscal year-end operations. Many stakeholders, including fleet operators and intercity bus services, depend on clear policy signals to adapt their compliance mechanisms. As India inches closer to a smart transport future, policy consistency and infrastructure readiness will remain critical. The hybrid ANPR-FASTag model may well become a benchmark for next-generation tolling in India, serving as a bridge between the present FASTag regime and a future built on real-time, location-based tolling. For now, FASTag stays firmly in place — and the journey towards a seamless, sustainable highway network continues, one innovation at a time.
Also Read : https://urbanacres.in/toll-hike-to-affect-indias-highways-from-april-2025/
FASTag to Stay as Government Denies Nationwide Satellite Toll Rollout from May
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