Indian Economy News

Digital-Only Toll Collection Implemented at National Highway Fee Plazas

The Ministry of Road Transport and Highways has implemented digital-only toll collection for all National Highway fee plazas, and permit payments through FASTag or Unified Payments Interface (UPI) only. The system improvement will decrease traffic jams through better toll operation, resulting in increased lane throughput and operational transparency. The reform lays the foundation for a fully digital tolling system, which will enhance travel efficiency and decrease cash handling problems throughout the highway system. The government has paused the implementation process in Tamil Nadu, Kerala, Assam, West Bengal, and the Union Territory of Puducherry because the Model Code of Conduct exists during the current electoral period.

The transition will create better traffic flow, which will result in less fuel consumption because vehicles will spend less time waiting, and more people will use digital payment methods on road systems. The transition will enable transport operators and logistics companies, along with exporters, to achieve better predictability for their trips and faster turnaround times for their fleets on vital freight routes. The reform supports the government's wider initiative, which seeks to establish intelligent transport systems and create seamless highway monetisation. Vehicles without a valid FASTag can still pay digitally via UPI, but are charged 1.25 times the applicable toll fee, encouraging wider FASTag usage while creating uniform toll collection procedures.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.