29 October 2026
ADVERTISEMENT
ADVERTISEMENT

GPS-Based Toll Collection: MoRTH Clarifies No Nationwide Rollout from May 1; Know All About the Innovative Toll System

This modern tolling mechanism will replace the current FASTag system in a phased manner and will charge users based on the actual distance travelled on tolled highways, rather than flat rates at physical toll plazas
MoRTH
Indian Masterminds Stories

In a major move aimed at revolutionizing highway travel, the Government of India is preparing to roll out a GPS-based toll collection system beginning May 2025, starting with commercial vehicles. This modern tolling mechanism will replace the current FASTag system in a phased manner and will charge users based on the actual distance travelled on tolled highways, rather than flat rates at physical toll plazas.

Also Read: Coal Ministry Launches Coal Import Monitoring System (CIMS) to Boost Transparency and Ease of Doing Business

However, clarifying recent media reports, the Ministry of Road Transport and Highways (MoRTH) on Friday stated that no decision has been taken regarding the nationwide implementation of the GPS-based tolling system from May 1, 2025. The ministry emphasised that the launch would not happen nationwide on that date and that any transition will be gradual.

MoRTH stated that to enhance seamless vehicular movement and reduce travel time, an ‘Automatic Number Plate Recognition (ANPR)-FASTag-based barrier-less tolling system’ will first be implemented at select toll plazas. This hybrid model will combine ANPR technology, which reads vehicle number plates, with the existing FASTag system that uses Radio Frequency Identification (RFID) for toll deduction.

Under this interim system, vehicles will be identified and charged without having to stop at toll plazas. High-performance ANPR cameras and FASTag readers will jointly handle identification and toll deduction.

In case of violations, e-notices will be issued to vehicle owners, and failure to comply may result in suspension of FASTag and other VAHAN-related penalties.

What is GPS-Based Toll Collection?

The GPS-based tolling system, expected to launch in phases from May 2025, uses satellite navigation systems such as India’s NavIC and GAGAN to track vehicle movement and calculate tolls based on precise distance travelled. Vehicles will be fitted with On-Board Units (OBUs) that communicate with satellites to determine travel on toll roads.

Unlike the current system that charges a fixed fee at toll booths, this model introduces virtual gantries—digital checkpoints along highways—that calculate tolls automatically as the vehicle crosses them. Fees are deducted directly from the driver’s linked bank account, and SMS alerts are sent for transparency.

The rollout will begin with commercial vehicles, such as trucks and buses, which are already equipped with Vehicle Location Tracking Systems. The system will then be gradually extended to private vehicles.

During this transition, the existing FASTag infrastructure will continue to operate alongside the new system. To accommodate this change, dedicated GNSS lanes (Global Navigation Satellite System lanes) will be introduced.

A proposed “zero user fee” policy will allow free travel of up to 20 kilometres daily in each direction on national highways, easing the burden on local commuters and short-distance travellers.

The GPS-based system offers several benefits:

  • Pay-per-use: Tolls based on actual distance travelled
  • No stops: Vehicles move without halting at toll booths
  • Reduced congestion: Smooth flow of traffic
  • Lower emissions: No idling at barriers
  • Wider coverage: Effective even in remote or underdeveloped regions

Despite the potential, there are challenges to address:

  • High initial cost of OBUs and infrastructure deployment
  • Technical reliability in areas with poor satellite connectivity
  • Cybersecurity and privacy concerns, as OBUs are linked to users’ bank accounts
  • Data privacy issues due to continuous tracking, though the government has assured compliance with the Digital Personal Data Protection Act, 2023

To ensure compliance, automatic enforcement using ANPR cameras will continue during the transition phase. Vehicles without OBUs or with non-functional units may be charged double tolls, in addition to receiving e-notices and facing other penalties under the VAHAN system.

With India’s vast road network spanning 6.67 million kilometres, full implementation will be a multi-year effort. However, once completed, the GPS-based tolling system is expected to transform the country’s road transport infrastructure by promoting efficiency, fair pricing, and digital innovation, while advancing the government’s broader goals under Digital India and Green Mobility initiatives.

Also Read: CBIC Issues Revised Guidelines for GST Registration Process to Ease Compliance Burden


Indian Masterminds Stories
Join our WhatsApp Channel
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
HAL
HAL Inaugurates Vigilance Awareness Week 2026, Emphasises Integrity and Ethical Governance 
PM Modi Gujarat Visit 2026
PM Modi’s Gujarat Visit: Bovine Research Centre, Rain Forest and Glass Skywalk Among Key Projects
Zero Ka Dum
BPCL Appoints IRS Dr Shalini Verma as Chief Vigilance Officer, Brings Extensive Administrative Experience 
Healthcare Hub
Jharkhand’s ₹2,184 Crore Medico City Project to Boost Medical Tourism and Create Jobs
IPS R
Who Is IPS R. Nishanthini? 2008-Batch Officer Becomes Kochi City’s First Woman Police Commissioner
Nalin Prabhat IPS
J&K DGP Nalin Prabhat Announces Martyrs Memorial Football, Hockey Tournaments to Engage Youth
Concor
CONCOR Secures ₹485.93 Crore Order from Braithwaite & Co for 24 BLSS Wagon Rakes 
Nalin Prabhat IPS
J&K DGP Nalin Prabhat Links Sports Participation to a Healthier, More Secure Jammu and Kashmir
ADVERTISEMENT
ADVERTISEMENT
Videos
Five years after Kargil, India sent its cricketing heroes to Pakistan where terrorism posed a deadly threat. The man guarding them, former Special Director of Intelligence Bureau, Mr. Yashovardhan Azad, reveals what all went behind the scenes during that crucial tour. 
Trust No One, Said His Instinct in Pakistan
Gajendra Singh Shekhawat
How India Plans to Boost Tourism, Create Jobs and Ease Overcrowding : Gajendra Singh Shekhawat on the Road to 2047
Dr Saket Badola IFS
Beyond Tigers and Safaris: How Corbett Literature Festival Wants to Change the Conservation Conversation
ADVERTISEMENT
UPSC Stories
Vishwas Jhargad UPSC CAPF
A Photograph of His Mother Accompanied Vishwas Jhargad to the UPSC Interview, Where His Dream Came Closer
Vishwas Vijay Jhargad lost both parents as a child. With his family's support, he secured AIR 145 in...
IA&AS Lokesh Datal
‘Dreams Don’t Change Lives, Daily Habits Do’: IA&AS Officer Lokesh Datal on UPSC and Discipline
IA&AS officer Lokesh Datal shares his UPSC journey, clearing the exam in his fourth attempt, building...
Mavis tak
From Dropping Out of School to Becoming an IPS Officer : How a Father’s Unwavering Support Helped Mavis Tak Achieve Success
For Mavis Tak, becoming an IPS officer once seemed like a distant dream. Despite financial struggles...
CSR NEWS
nalco
NALCO Foundation Signs MoU to Sponsor 21 Odisha Youths for Three-Year Nursing Diploma 
The three-year nursing course will support youths from villages near NALCO’s Anugul and Koraput complexes,...
NALCO Nursing Education Initiative
NALCO Foundation Signs MoU to Sponsor 40 Odisha Youths for Three-Year Nursing Diploma Course
The initiative will support GNM nursing education for youths from villages near NALCO’s Angul and Koraput...
MCL CSR Projects
MCL Signs Two MoUs with Sambalpur Administration, Invests ₹1.51 Crore in CSR Projects
The initiatives will provide one-year nutritional support to 1,100 TB patients and install solar streetlights...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
HAL
HAL Inaugurates Vigilance Awareness Week 2026, Emphasises Integrity and Ethical Governance 
PM Modi Gujarat Visit 2026
PM Modi’s Gujarat Visit: Bovine Research Centre, Rain Forest and Glass Skywalk Among Key Projects
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Five years after Kargil, India sent its cricketing heroes to Pakistan where terrorism posed a deadly threat. The man guarding them, former Special Director of Intelligence Bureau, Mr. Yashovardhan Azad, reveals what all went behind the scenes during that crucial tour. 
Gajendra Singh Shekhawat
Dr Saket Badola IFS
ADVERTISEMENT
ADVERTISEMENT