FASTag Stays, No Satellite-based Toll from 1st May
Moneylife Digital Team 21 April 2025
The Union ministry of road transport and highways (MoRTH) has clarified that no decision has been taken to implement a nationwide satellite-based tolling system from 1 May 2025, countering recent media reports suggesting otherwise.
 
In an official statement, MoRTH refuted claims that the current FASTag-based toll collection system will be replaced by satellite technology next month. It confirmed that the national highways authority of India (NHAI) has not finalised any such plan and that the existing system remains in place.
 
Instead, MoRTH says the government is exploring a hybrid, barrier-less tolling solution that combines automatic number plate recognition (ANPR) with the existing FASTag system. The pilot, known as the ANPR-FASTag-based barrier-less tolling system, will be rolled out at selected toll plazas across the country, it added.
 
This advanced tolling mechanism aims to allow vehicles to pass through toll plazas without halting, thereby reducing congestion and travel time. ANPR cameras will read vehicle number plates, while FASTag RFID readers will handle toll deductions. For vehicles that are not properly identified or do not comply with payment protocols, electronic notices will be issued. Repeated violations could lead to the suspension of FASTag services and other penalties under the VAHAN system, the ministry added.
 
MoRTH stated that bids have been invited for the installation of this system at designated locations. A nationwide decision on its implementation will be taken only after a thorough assessment of the pilot’s efficiency, performance, and user feedback.
 
The clarification comes amid growing public interest in tolling reforms and technological upgrades on India’s road network.
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