National Highways to Adopt Smart Tolls

India’s road infrastructure into a digitally governed and eco-efficient system, the National Highways Authority of India (NHAI) is set to launch a GPS-based toll collection system from May 1, 2025.

This satellite-enabled tolling model is poised to replace the current FASTag system in phases, fundamentally altering the experience of highway commuting for millions across the country. The innovative system uses Global Navigation Satellite System (GNSS) technology to determine the exact distance travelled by a vehicle, based on which the toll will be charged. This marks a significant shift from the present FASTag mechanism, which relies on Radio Frequency Identification (RFID) and still requires vehicles to slow down or stop at designated toll plazas. The GPS-based approach is designed to eliminate such choke points entirely, promising faster, fuel-efficient travel and significantly reduced congestion.

Union Minister for Road Transport and Highways recently affirmed that the new tolling model will be operational by the end of April, with a pilot rollout across select stretches of National Highways. Speaking in Nagpur, the Minister underscored the government’s broader objective of enabling contactless and transparent tolling, stating, “We are introducing a satellite toll system so that commuters no longer need to stop at toll plazas. Time, fuel, and money will all be saved.” The transition reflects a deeper policy shift in how India visualises future-ready infrastructure—focused on sustainability, digital integration, and ease of governance. In effect, the GNSS-powered toll model will allow vehicles to be monitored in real time via satellite, logging distance covered and charging road users proportionally. Payments will be automatically deducted from linked bank accounts or digital wallets, bringing unprecedented ease to long-distance travel.

While the FASTag system has significantly improved toll efficiency in recent years, it still falls short during peak hours when bottlenecks build up at toll points. The GNSS upgrade seeks to resolve these limitations by removing the need for any physical toll infrastructure at all—vehicles simply keep moving as tolls are calculated virtually. The satellite-based system is also expected to bring dual benefits to both the economy and the environment. With seamless vehicle flow, fuel wastage caused by idling engines at toll booths will drop, leading to lower vehicular emissions and a smaller carbon footprint. At a systemic level, such a shift supports India’s commitments to decarbonise transport and build net-zero cities, as envisioned under its climate and urban mobility goals.

From a technological standpoint, GNSS tolling places India among a select group of nations experimenting with or implementing virtual toll booths. The system will offer users both prepaid and postpaid options, integrating smoothly with digital banking and wallets, and opening new avenues for real-time monitoring and data-driven traffic management. Yet, the success of this initiative will rest heavily on its execution. Ensuring GPS accuracy across the country, especially in dense urban corridors or rural stretches with weak satellite connectivity, will be critical. Additionally, public trust in the system’s reliability and fairness—particularly in terms of billing accuracy—must be earned over time.

Despite these challenges, the move signals a strong commitment by the Indian government to embrace smart, inclusive, and future-proof transport policies. If effectively deployed, GNSS-based tolling could become a cornerstone of a larger vision to transform Indian highways into intelligent, green corridors that serve citizens efficiently and equitably.

National Highways to Adopt Smart Tolls