NHAI income per FASTag declines 8% as compliance rises, shows data

The National Highways Authority of India (NHAI) earned Rs 165 on every FASTag in the first half of 2021, an 8 per cent decline from Rs 179 a year ago, as the Radio Frequency Identification (RFID) compliance led to a fall in revenue.
 
These tags come with a discount and, therefore, adherence to them means less revenue collection for the NHAI. It collected Rs 15,518.8 crore in toll from January to June 2021, more than double the previous year’s figure, with 635 million vehicles passing through.
 
The number of vehicles, which was rising since the start of the year, dipped to 116.48 million in May when a majority of the states imposed lockdowns to curb the spread of coronavirus. It has picked up since the unlock process began in June to reach 157.86 million, surpassing January’s figure of 148.56 million.
 
Between January 2020 and June 2020, the total collection was Rs 7,786.76 crore, while the traffic volume was 435 million.

“There is a dip in collection on a per FASTag basis. This can be attributed to the expanding coverage of FASTag, indicating a shift in adoption from high-frequency toll road users (truckers) to normal users. Indications are that we have achieved 95%+ FASTag adoption and hence the level of Rs 150- 160 per FASTag per month can be taken as the norm for future projections,” said Jagannarayan Padmanabhan, director and practice leader — transport & logistics.

The Union government made FASTags mandatory from February 15 midnight. Any vehicle without it is charged double the toll at electronic toll plazas across the country.
 
The Ministry of Road Transport and Highways had mandated FASTag on motor vehicles with effect from January 1, 2021.
 
The idea was to promote digital payments, reduce waiting time and fuel consumption, and provide for a seamless passage through the plazas.