Millions of private vehicle owners in India are set to benefit from a major change in the toll collection system. The Ministry of Road Transport and Highways has introduced new rules under the National Highways Fee (Determination of Rates and Collection) Amendment Rules, 2024. These updated rules will allow private vehicles to travel short distances on national highways and expressways without paying any tolls.

GNSS-Based Toll Collection
The new system uses Global Navigation Satellite System (GNSS) technology to track vehicles and calculate tolls. According to the revised rules, private vehicles equipped with a working GNSS device will not have to pay tolls for journeys up to 20 kilometers per day. If the trip exceeds 20 kilometers, the toll will be charged based on the actual distance traveled. This is a significant change aimed at reducing costs for those who make shorter commutes on highways.
An official statement from the ministry explains, "A driver, owner, or person in charge of a mechanical vehicle other than a National Permit vehicle who uses the same section of the national highway, bridge, bypass, or tunnel shall be levied a zero-user fee for journeys up to 20 kilometers in each direction under the GNSS-based toll collection system."
Improving Efficiency at Toll Plazas
The GNSS-based toll collection system has been in the works for some time. A pilot project was launched earlier to test this technology alongside the existing FASTag system. By using GNSS, the government hopes to make toll collection faster and reduce congestion at toll plazas.
The ministry also stated that dedicated lanes could be introduced at toll plazas for vehicles with GNSS On-Board Units (OBU). If a vehicle enters this lane without a working GNSS device, it will be charged double the standard toll fee.
Transition from FASTag to GNSS
Currently, the FASTag system is used to collect tolls at physical booths, but the new GNSS system will create virtual toll booths. These virtual booths will track the distance traveled by vehicles on highways. The GNSS system will collect data such as the vehicle's type, registration number, and bank details to charge the appropriate toll.
Though the GNSS system will be introduced, the existing FASTag system will continue to function, ensuring a smooth transition for commuters. GNSS technology is expected to help reduce long queues at toll plazas, especially during peak traffic hours, making daily travel faster and hassle-free.
Benefits of the GNSS-Based System
The GNSS-based toll collection system will reduce the waiting time at toll booths significantly. It will also help cut down traffic congestion, particularly during busy hours. The new system will allow travelers to pay only for the actual distance they cover, making it a more cost-effective and transparent system. Additionally, the removal of physical toll booths will reduce maintenance costs and make the overall toll collection process more efficient.
Dedicated GNSS lanes will be established at toll plazas, allowing vehicles with GNSS On-Board Units to pass through without stopping. As more people adopt GNSS technology, all lanes will gradually shift to GNSS, improving the overall efficiency and convenience of toll collection across India's highways.



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