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GPS-Based Toll Collection System


GPS-Based Toll Collection System: How it Works?

  • Under GPS-Based Toll Collection System, vehicles will be fitted with an electronic device that can track movement of the vehicle. Highways will be geo-fenced, creating virtual boundaries.
  • When a GPS-enabled vehicle enters a toll plaza, they system will detect it and toll will be charged based on the distance travelled at the highway’s exit point.
  • As GPS-Based Toll Collection System is based on sensors, there will be no need to stop at toll plazas.
  • Vehicles and users must be registered with the GPS-Based Toll Collection System, linked to bank accounts that will be used to transfer toll payments.

GPS Based Toll Collection System: Challenges

  • More burden on consumer: To enable GPS based Toll Collection System, it will be necessary for all vehicles to have a GPS installed, which will an extra burden on the consumer.
  • Privacy issues: With GPS based Toll Collection System, the government can acquire the GPS coordinates of the moving vehicles and constantly track them, which may lead to privacy issues.
  • Cyber security concerns: In the case of FASTag, there is a separate wallet for the FASTag account provided by the bank. In the case of the GPS based Toll Collection System, will the money will be deducted from the existing saving accounts of the owners. If this happens it can lead to serious cyber issues.
GPS-Enabled Toll Collection System
GPS-Enabled Toll Collection System

GPS-Based Toll Collection System: Progress

  • The Ministry of Road Transport and Highways (MoRTH) has amended the National Highways Fee (Determination of Rates and Collection) Rules, 2008, allowing for the Toll Collection System on distance travelled on national highways. This will facilitate introduction of GPS tolling.
  • First trials may be done on the under-construction Mumbai-Delhi expressway which will be geo-fenced.

About FastTag Toll Collection System

  • Background: In November 2020, the government amended the Central Motor Vehicles (CMV) rules to make FASTag compulsory for all vehicles on toll plazas along all national highways, beginning January 1, 2021.
  • FASTags are prepaid rechargeable tags for toll collection. FASTags do not have any expiry date, hence, they can be used as long as they are not tampered with and are readable at the toll plazas.
  • How a FASTag Toll Collection System works? A FASTag is affixed to the windscreen of the vehicle and is linked to a prepaid account. Toll payments are made through Radio Frequency Identification (RFID) technology, as the vehicle drives through the toll gate.
  • Benefits of FASTag Toll Collection System:
    • Reduces overcrowding and wait time at toll plazas.
    • Prevents air pollution which occurs due to congestion around toll plaza.
    • Ease of transaction through digital payment of toll-fare.
    • Better highway management and reduced efforts in managing toll plaza.
  • Performance of FASTag system so far:
    • Penetration has grown from nearly 16% in FY18 to 96.3% in FY22.
    • In FY22, toll collection through FASTags increased sharply to₹33,274 crore out of total toll collection of ₹34,535 crore.
  • Shortcomings
    • Still, the wait time at toll booths is much more than 30 seconds.
    • Also, it has not helped reduce the number of toll booths.
Toll Collection System
Toll Collection System

How Will It Be Different From Fastag Toll Collection System?


GPS Based Toll Collection System

Use of RFID Technology Use of GPS system in vehicles
Automatic Deduction through FASTag scanner at toll booths Deduction through tracking of GPS coordinates
Detected only when the vehicles approach a toll booth Entire travel route to be tracked
Toll booths need to be stationed This will lead to the removal of all physical toll booths and toll plazas
  • Reduction in wait time: As the GPS Toll Collection System uses satellite-based navigation and requires no halting of vehicles, it will further reduce the wait time and congestion at the toll plazas.
  • Reduction in travel costs: As the vehicles will be charged only for their actual travel on a highway stretch.


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