The Ministry of Road Transport and Highways in India has introduced a significant change to its toll collection system for highways and expressways, set to take effect from Tuesday, September 10, 2024. This new regulation, formalised through an amendment to the National Highways Fee (Determination of Rates and Collection) Rules, 2008, allows motorists with vehicles equipped with functional global navigation satellite system (GNSS) devices to travel toll-free for up to 20 kilometers daily.
This amendment, officially titled the National Highways Fee (Determination of Rates and Collection) Amendment Rules, 2024, marks a shift in how toll fees are calculated and collected. Under the new system, fees will only be charged for distances exceeding the 20-kilometer daily allowance, based on the actual distance traveled.
The government notification provides specific details about the implementation of this new policy. It states that drivers, owners, or individuals in charge of mechanical vehicles, excluding those with National Permits, will be exempt from user fees for journeys up to 20 kilometers in each direction per day when using the same section of a national highway, permanent bridge, bypass, or tunnel. This exemption applies when the toll is collected through the GNSS-based user fee collection system.
To encourage the adoption of this new technology, the notification also mentions the possibility of designating exclusive lanes for vehicles equipped with GNSS On-Board Units. As an incentive for compliance, any vehicle entering these lanes without a valid, functional GNSS On-Board Unit will be subject to a penalty fee equivalent to twice the standard user fee applicable at that particular toll plaza.
This move towards a GNSS-based toll collection system is part of a broader initiative by the highway ministry. In July, the ministry announced plans to implement this system on select national highways as a pilot project, complementing the existing FASTag system. Union Road Transport and Highways Minister Nitin Gadkari revealed that pilot studies for this GNSS-based user fee collection system had already been conducted on two stretches- the Bengaluru-Mysore section of NH-275 in Karnataka, and the Panipat-Hisar section of NH-709 in Haryana.
To further develop this system, the ministry organised an international workshop for stakeholder consultation on June 25, 2024. A global expression of interest (EOI) was issued on June 7, 2024, with a submission deadline of July 22, 2024, to gather input from a wide range of industry players.
The National Highways Authority of India (NHAI) intends to implement the GNSS-based electronic toll collection (ETC) system within the framework of the existing FASTag ecosystem. Initially, this will be done using a hybrid model where both the RFID-based ETC and the new GNSS-based ETC systems will operate concurrently.
The implementation of GNSS-based electronic toll collection in India is expected to bring several benefits to highway users. These include enabling barrier-free, free-flow tolling, which should result in a more seamless and hassle-free driving experience. Moreover, the system allows for distance-based tolling, meaning users will only pay for the specific stretches of national highway they have actually traveled on.
Beyond improving the user experience, the GNSS-based collection system is anticipated to enhance the efficiency of toll collection. It is designed to address issues such as revenue leakage and help in identifying and deterring toll evaders, thereby potentially increasing overall toll revenue for the highway authorities.