India is targeting the introduction of multi-lane free-flow tolling by February, Union Road Transport and Highways Minister Nitin Gadkari said on Friday, outlining the next phase of the country’s FASTag-based highway payment system. The proposed system would allow vehicles to pass toll points without stopping at physical barriers.
Speaking at the Global Fintech Fest, Gadkari said the government was moving towards fully digital and eventually barrier-free toll collection. The multi-lane free-flow, or MLFF, system is intended to eliminate stoppages at toll plazas, reduce fuel consumption caused by idling and lower the cost of operating and maintaining toll infrastructure.
Gadkari said FASTag had already reduced waiting times at toll plazas by between 80% and 90%. Waiting periods that previously reached about 12 minutes, and in some cases 30 minutes, have fallen significantly since the electronic toll collection system was adopted, he said. FASTag has also reduced the need for cash payments and exact-change handling at toll booths.
According to figures cited by the minister, faster toll collection is estimated to save 71 crore hours annually. The resulting economic savings have been estimated at about Rs 68,500 crore a year. Gadkari also linked the reduction in vehicle idling and fuel consumption to environmental gains equivalent to planting around 2.7 crore trees.
The proposed transition to MLFF would extend the digital infrastructure already created through FASTag. Under the system described by Gadkari, vehicles would be able to move through toll points without stopping at a physical barrier. The government is also seeking to make highway payments entirely digital and increase participation by banks in the FASTag network.
Gadkari said the wider use of digital tolling could generate an estimated benefit of Rs 20,000-25,000 crore for the government through digital systems, innovation and research. He also called for greater competition in the tolling market, saying that more participants could help improve service quality.
The minister described FASTag as part of a broader digital mobility ecosystem involving vehicle records, insurance and banking systems. He identified the VAHAN vehicle database, insurance systems and banking infrastructure as connected components of that ecosystem, while noting that technology alone would not be sufficient to build public trust in digital infrastructure.
The government has also introduced an annual pass for non-commercial passenger vehicles. Under the current scheme cited by Gadkari, motorists can pay Rs 3,000 for toll-free travel at 200 toll plazas.
The move towards barrier-free tolling follows the government’s effort to replace cash-based collection with electronic payments. Gadkari said the digital system had largely ended situations in which motorists received small goods, such as chocolates, instead of change at toll booths. The proposed MLFF rollout is expected to be the next operational milestone in the transition to highway tolling without physical stoppages.
