India is preparing to introduce a satellite-based toll collection system that promises to redefine highway commuting.
The new mechanism, expected to roll out nationwide within a fortnight, will enable free daily travel of up to 20 kilometres on national highways and expressways, while ensuring that toll charges are levied strictly based on actual distance travelled. The technology, driven by the Global Navigation Satellite System (GNSS), marks a departure from the traditional toll plaza infrastructure and even the semi-digital FASTag framework. This shift is poised to streamline tolling operations, minimise fuel wastage, and significantly reduce travel time by eliminating stoppages at toll booths—many of which are often sites of congestion, air pollution, and road rage incidents.
Vehicles will be equipped with GNSS-enabled on-board units (OBUs), which facilitate real-time tracking through satellite signals. These units will directly link to a commuter’s digital wallet or bank account, from which toll payments will be deducted automatically. The system calculates charges based on the exact distance driven on tolled highways, doing away with the one-size-fits-all pricing at fixed plazas. Officials overseeing the initiative say this transformative move aligns with the broader goal of decarbonising the transport sector. With India’s road transport emissions contributing significantly to urban air pollution, eliminating idle time and stop-start traffic at toll booths could help curb carbon output and promote more efficient fuel use. It also aligns closely with India’s commitment to net-zero emissions by 2070.
Pilot trials of the satellite tolling system are currently being conducted across selected corridors, where initial data has shown strong promise in both operational accuracy and public adaptability. Officials involved in the project note that the upcoming nationwide implementation will be integrated with the existing FASTag infrastructure to ensure a smoother transition. However, the long-term vision is to phase out toll plazas entirely and move towards a 100 per cent contactless, cashless toll ecosystem. Infrastructure analysts suggest that beyond environmental gains, the satellite tolling initiative represents a critical evolution in India’s digital infrastructure capabilities. By leveraging real-time data and geospatial intelligence, highway authorities will be better equipped to monitor traffic flows, plan future road development, and even issue congestion warnings. The data collected could feed into national transport planning frameworks, making urban mobility smarter and more responsive.
Officials leading the implementation argue that a 20-kilometre toll-free daily allowance will not only ease the financial burden on short-distance commuters but also encourage a modal shift towards more regular and predictable highway use. For last-mile logistics operators and small-scale traders, this could represent a cost-saving measure with broader economic implications—especially in semi-urban and rural pockets where national highways often double up as local lifelines. Transport policy experts also see the GNSS-based tolling mechanism as an important equity measure. Unlike the current tolling system, which often disproportionately impacts low-income road users near toll plazas, the distance-based model ensures that payment is strictly usage-driven. The removal of toll booths could also lead to more equitable land use around highways, where real estate value has been affected by proximity to high-traffic toll points.
However, experts caution that ensuring robust data protection and digital access across all vehicle categories, including older and commercial fleets, will be key to the system’s success. The government is reportedly working with both domestic and international technology providers to ensure OBUs are affordably priced and interoperable across vehicles and regions. While the satellite tolling framework is still in its early phase, its implementation will be a defining test of India’s readiness for intelligent, inclusive, and green transport solutions. If successful, it could become a global case study in how developing economies can leapfrog traditional infrastructure limitations through technology-driven governance.
As the transport ministry prepares for a phased deployment, all eyes will be on how smoothly India transitions to this new tolling paradigm—one that promises to make commuting faster, fairer, and more climate-resilient.
India Set to Launch Satellite-Based Tolling System with Daily Free Travel
