New toll rules: Is FASTag's end near with GNSS rollout? Who's using it?

Vehicles equipped with On-Board Units (OBUs) featuring GNSS will automatically have tolls deducted based on the distance travelled, with the initial 20 km being free of charge

The Ministry of Road Transport and Highways has introduced a significant update aimed at improving toll payment systems for highway users. On September 10, it revised the National Highways Fee Rules, 2008, incorporating advanced technology to streamline toll collection.

While many drivers are already familiar with the FASTag system for quicker toll payments, the government is now implementing a more sophisticated satellite-based toll collection system. Using the Global Navigation Satellite System (GNSS), which includes GPS technology, this new system will enable toll payments without the need to slow down at toll booths.

With this new approach, vehicles equipped with On-Board Units (OBUs) featuring GNSS will automatically have tolls deducted based on the distance travelled. This means no more stopping at toll plazas or managing FASTag balances. Rule 6 has also been updated to designate exclusive lanes for vehicles with GNSS OBUs, allowing for uninterrupted travel. Additionally, the first 20 km of any journey on this system will be toll-free, with charges applying only for distances covered beyond that point.

The OBUs installed in vehicles will track movements on highways and communicate this data to satellites, ensuring precise distance calculations. CCTV cameras positioned along the highway will further verify vehicle locations to maintain accuracy.

The system will initially be rolled out on key highways and expressways.

How can you get OBUs installed?

The OBUs will be available through government portals, similar to FASTags. They will need to be externally installed on vehicles, although manufacturers may eventually offer vehicles with pre-installed OBUs.

How will GNSS help in toll calculation?

Toll charges will be calculated by matching the data from the vehicle’s trip—such as entry and exit points, distance travelled, and time of travel—against predefined pricing schemes. Some OBUs may calculate tolls directly, while others send data to a centralised system for processing.

Toll collection method

Once the toll is calculated, it will be automatically deducted from the user's prepaid account or linked payment method, eliminating the need for physical toll booths or gantries. This allows vehicles to maintain their speed and avoid stopping altogether.

Will FASTags become useless?

Although FASTags are still in use, the new GNSS technology will first be rolled out on key highways and expressways. For those without an OBU, obtaining one will be simple, as the process will be similar to acquiring FASTags through government portals.

Which other countries have a GNSS-based toll system?

GNSS-based toll systems are already widely implemented across Europe, particularly for truck tolling. Germany pioneered the system in 2005, and Slovakia followed in 2010, covering over 15,000 km of roads within four years. Countries like Belgium, Hungary, Russia, the Czech Republic, and Bulgaria have also adopted GNSS tolling for vehicles weighing over 3.5 tons.

Reportedly, Poland too has plans to replace its microwave-based tolling system with a GNSS solution. By 2020, GNSS technology accounted for 74 per cent of the tolled roads in the European Union, covering over 85,000 km.