Starting May 1, 2025, India is set to witness a historic transformation in its highway toll collection system. The National Highways Authority of India (NHAI) is replacing the widely-used FASTag system with an advanced GPS-based toll collection technology. This new system is designed to enhance efficiency, reduce congestion, and bring transparency to toll charges across the country. Here’s everything you need to know about this big change in road travel.
Over the past few years, FASTag has significantly streamlined toll payments, reducing wait times at toll plazas. However, certain challenges like tag misuse, long queues at high-traffic toll booths, and system errors still persist. To overcome these issues and align with global best practices, the Indian government is introducing a GPS-based tolling system.
The upcoming GPS-based toll system uses satellite navigation to track vehicles and calculate toll fees based on the actual distance traveled on national highways. The system is powered by advanced ANPR (Automatic Number Plate Recognition) cameras and GPS modules installed in vehicles.
Under the new tolling mechanism, vehicles will be equipped with either factory-fitted GPS devices or retrofitted units. These devices will communicate with a central system to track entry and exit points on highways.
For existing FASTag users, the transition to the new system will be relatively smooth. The government plans a phased implementation and has provided guidelines for users to shift to the GPS-based system.
The government has assured that the new toll system will offer wide-ranging benefits not just for individual vehicle owners, but for logistics, highway authorities, and the environment too.
To ensure a smooth transition, vehicle owners and fleet operators need to follow the official guidelines issued by NHAI and MoRTH (Ministry of Road Transport & Highways).
With GPS tracking involved, data privacy has been a major concern among users. The government has clarified that only minimal and essential location data will be used for tolling purposes and will not be shared without consent.
The new toll system will first roll out across major national highways, especially in high-traffic corridors. Here are some regions likely to be part of Phase 1:
Likely Highways Covered Initially:
Delhi-Mumbai Expressway.
Bengaluru-Chennai Highway.
Golden Quadrilateral Corridors.
Delhi-Kolkata National Highway.
Eastern and Western Peripheral Expressways.
India’s move from FASTag to a GPS-based toll system marks a significant step toward a futuristic, digital highway infrastructure. This ambitious initiative is expected to save billions in fuel costs, reduce traffic congestion, and offer a fairer toll payment model for all road users. While there might be initial teething troubles, the long-term benefits are promising for everyone—commuters, logistics companies, and the environment.
The details in this article are based on official announcements and government notifications as of April 2025. Any changes in the rollout plan or policies should be verified from official sources such as the NHAI website or MoRTH announcements.