IBEF: March 19, 2021
Union Road Transport and Highways Minister, Mr. Nitin Gadkari stated on Thursday that India will phase out toll booths and replace them with GPS-based toll collection within a year.
He stated that while 93% of vehicles pay toll using FASTag, the remaining 7% do not, despite paying a double toll.
Mr. Gadkari said, “I would like to assure the House that all physical toll booths throughout the country will be taken away within a year. It means that tolls will be collected using GPS. The funds will be procured using GPS imaging (on vehicles).”
The minister stated that he has directed a police investigation into vehicles that do not pay tolls using FASTags. If FASTags are not installed in vehicles, there have been cases of toll theft and GST evasion.
Introduced in 2016, FASTags allow for electronic toll payment at toll plazas.
Vehicles that do not have a FASTag must pay a double toll at electronic toll plazas across the country beginning February 16, 2021.
Making the tags mandatory would also help guarantee that vehicles move through the toll plazas is smoothy, as the fee payment would be done electronically.
FASTags are installed in new vehicles, and the government has stated that old vehicles will receive free FASTags.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.