New Delhi: The Ministry of Road Transport and Highways is developing a new toll policy to enable highway users to pay tolls based on the actual distance travelled, replacing the current fixed toll system.
At present, tolls are charged as a fixed amount for a stretch of about 60 km, in accordance with the National Highways Fee (Determination of Rates and Collection) Rules, 2008. The proposed model aims to charge users on a per-kilometre basis, ensuring more accurate and fair tolling.
A senior government official confirmed that the new system will eliminate the need for physical toll plazas. Instead, tolls will be collected automatically using Automatic Number Plate Recognition (ANPR) technology. This system is being rolled out to support the upcoming policy shift.
India has already implemented FASTag, which uses RFID technology for electronic toll payments. The shift to ANPR is expected to further streamline toll collection, reduce travel time, and eliminate congestion at toll plazas.
Jagannarayan Padmanabhan, Senior Director & Global Head at Crisil Intelligence, noted that the move will improve toll efficiency and reduce delays, particularly during peak hours.
Revenue Sharing with Concessionaires
Under current concession agreements, private contractors collect tolls to recover construction and maintenance costs. The new model proposes a centralised revenue pool managed by the government, which would distribute toll revenue to concessionaires, ensuring no revenue loss under the per-km system.
The official added that the new system will address issues of under-reporting of toll revenue by private operators.
Padmanabhan also pointed out that while the barrier-less system should increase efficiency and revenue, any policy change that transfers the risk of default payments to concessionaires must be carefully managed.
According to the Ministry, the National Highways Authority of India (NHAI) has floated bids to pilot the ‘ANPR-FASTag-based Barrier-Less Tolling System’ at select toll plazas. Nationwide implementation will be considered based on its performance, operational efficiency, and public response.
