No More Stopping at Toll Plazas As Centre Plans To Adopt Electronic Tolling

The familiar sight of long queues at toll plazas may soon be a thing of the past. The Union government has announced a major transition in the country's tolling system, signalling the eventual end of traditional toll booth collections.

Union Road Transport and Highways Minister Nitin Gadkari told Parliament on Thursday that a new electronic tolling mechanism is already being piloted and will replace existing systems across India within a year.

Speaking during Question Hour in the Lok Sabha, Gadkari confirmed that the upgraded toll collection system has been introduced at 10 locations as part of an early rollout. "This toll system will end. There will be no one stopping you in the name of toll. Within a year, an electronic toll collection system will be implemented across the country," he said.

The announcement comes at a time when India is witnessing unprecedented expansion in its road infrastructure. According to Gadkari, nearly 4,500 highway projects valued at around ₹10 lakh crore are currently under various stages of construction, strengthening the case for more efficient, technology-driven management of national highways.

Digitising India's Highways

India's road network, which stretches over 63 lakh kilometres as of March 2025, is the second largest in the world. The National Highway network, in particular, has undergone remarkable growth-expanding to 1,46,204 kilometres from 91,287 kilometres in 2013-14, marking a 60% increase in just over a decade. Between 2014 and 2025 alone, the country added nearly 55,000 kilometres of new highways.

This rapid expansion has prompted the government to undertake a comprehensive digital transformation of highway operations. A 360-degree upgrade is currently underway, covering every stage of a project's lifecycle-planning, detailed project reports, construction supervision, maintenance, tolling, and future upgradation. The objective is to eliminate inefficiencies, reduce human intervention, and ensure smooth, predictable travel for motorists.

FASTag and NETC: The Backbone of the New System

Central to this nationwide transition is the National Electronic Toll Collection (NETC) programme, developed by the National Payments Corporation of India (NPCI). NETC provides a unified, interoperable platform for electronic toll payment, allowing seamless transactions through a centralized clearing house that handles settlements and dispute resolution.

FASTag, the RFID-enabled tag affixed to a vehicle's windscreen, is the key component of NETC. Linked directly to a user's payment account, FASTag allows toll deduction automatically as the vehicle passes a plaza-eliminating the need to stop or pay manually. With standardised specifications across all operators, a single FASTag works at every toll plaza in India.

FASTag penetration now stands at an impressive 98%, with more than 8 crore users nationwide.

Annual Pass, New Rules Push Digital Adoption

In August 2025, the government introduced the FASTag Annual Pass for non-commercial vehicles-a move aimed at offering greater convenience to frequent highway users. Priced at ₹3,000 for one year or 200 toll crossings, the pass was quickly adopted, crossing 25 lakh users and recording over 5.6 crore transactions within just two months of launch.

To further reduce cash usage at toll plazas, the government amended the National Highways Fee Rules, effective November 15, 2025. Under the revised norms, vehicles without FASTag will have to pay twice the regular toll rate, while those choosing to pay via UPI will be charged 1.25 times the fee. The policy aims to encourage digital payments, reduce congestion at toll gates, and ensure faster movement along National Highways.

As India steadily moves towards a fully electronic tolling ecosystem, the upcoming system promises a future where highway travel is faster, smoother, and entirely barrier-free.