Paper Released by

BARRIERLESS
TOLLING IN INDIA
TOWARDS EFFICIENT,
SUSTAINABLE
ʙʼˁˁ˂ˉʴˇʼˉʸʼˁʹ˅ʴ

APPROACH PAPER RELEASE BY

SHRI NITIN GADKARI
Minister of Road Transport & Highways
 TABLE OF CONTENTS
Message from Hon’ble Minister of Road
Transport & Highways 01
Prologue : Message from Shri. Davinder Singh
Sandhu & Shri. Vaibhav Dange 02
Executive
Summary 03

Existing Ecosystem
1. Highway Commute 09

Envisaged Indigenous Framework

2. from Global Learnings 23

Game Changing Strategic

3. Implementations 30

Key Industry
4. Takeaways 37

5. Annexure 40
Message from Hon’ble Minister of
Road Transport & Highways
Prologue : Message from Shri. Davinder Singh
Sandhu & Shri. Vaibhav Dange

India’s highways are evolving into more and policymakers who have envisioned a
than just roads—they are becoming the smarter, more efficient highway system
lifelines of a thriving nation, connecting for India. It provides the way ahead for
people, ideas, and opportunities. These adopting GNSS-based tolling for cutting-
vital arteries of progress form the edge technological developments in our
foundation of economic growth, social infrastructure sector.
equity, and innovation.
The GNSS-based tolling initiative is uniquely
Over the last decade, India has emerged as built on the strength of India’s NavIC
a global leader in highway development. satellite system, a homegrown technology
Expanding our national highway network that addresses local challenges while
to over 1.46 lakh kilometers and launching meeting global standards. Integrated
transformative initiatives like FASTag have with intelligent traffic systems, increased
streamlined travel, reduced emissions, electric vehicle adoption, and resilient
and revolutionized toll collection. Projects infrastructure, it aligns perfectly with our
like the iconic Delhi-Mumbai Expressway vision for sustainable development and
exemplify our commitment to building climate action.
world-class corridors that empower both
mobility and connectivity. This is not just a technological
advancement but a bold step toward
Today, I am delighted to comment on creating highways that are smarter,
our latest leap forward - GNSS-based greener, and better equipped for the future.
tolling. This revolutionary, barrierless It reflects our unwavering commitment to
tolling system is powered by satellite transforming India’s highways into next-
technology and will transform the way we generation mobility solutions that drive
experience our highways. By eliminating progress, prosperity, and inclusivity.
toll plaza congestion and enabling fair,
distance-based tolling, this system Together, let us embrace this movement
promotes environmental sustainability and work toward a future where our
and enhances commuter convenience. highways lead not just to destinations but
to boundless opportunities.
I take this opportunity to express my
appreciation for the launch of this
landmark report. This report is a testament
Thank you.
to the dedication of our experts, engineers,

Shri Davinder Singh Sandhu

Co-Founder & Chairperson of
Primus Partners Private Limited

Shri Vaibhav Dange

Public Policy Expert on Infrastructure,
Green Fuels & Sustainable Mobility, Think Infra
Executive Summary

In the last decade, Government Services System) offers a cutting-edge solution for
(G2C/G2B/G2G) have witnessed a sea open-road tolling (ORT), eliminating the
change with “transparency, equitable need for physical toll booths and enabling
access and effective services delivery” distance-based tolling. This system
are treated as given and “time-to-serve aligns with India’s goal of modernizing
and ease-of-service are new success- its transportation infrastructure while
norms”. Any service provider (both supporting sustainable development.
public/private) who has attained higher
degree of maturity in these two norms India as of end of December 2024 holds
have become “super-service platform”. the largest road network of over 6.33
Every Government is actively embracing million km in the world. The National
time-to-serve as critical success pill in all Highways constitute to about 2.3% the
their services offering. One such service entire network carries 40% of the India’s
marquee beneficiaries are the highway traffic. Two decades ago, the average
two-wheeler (2W) and four-wheeler (4W) waiting time at the national highway toll
users across the highways growing at rate plaza during peak times were around
of 60% since last nine years i.e. 3.26+ lakh 10-12 minutes per vehicle which resulted
km (1.46 lakh km National Highway and 1.80 annual expenditure ~ INR 87000 crores per
lakh km State Highway) highway length. annum. India in their constant endower
India’s rapidly expanding highway network to transform the toll user experience
requires a shift from traditional tolling to had embraced Electronic Toll Collection
advanced, seamless systems to improve (ETC) and brough down the wait time
traffic efficiency, reduce emissions, to 30 seconds per vehicle. In a move
and enhance user experience. GNSS- further enhance seamless movement
based tolling (Global Navigation Satellite of vehicles across Highways near to

4 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 zero toll waiting time, barrier-free tolling GCIS#5: Environmental, Social and
is being envisaged. This intervention Governance (ESG) framework – In the
apart enhances toll user experience with barrierless GNSS approach, seamless
20% increase in traffic flow as in case of movement with near to zero waiting time
Delhi-Noida-Direct flyway and 50% red has been envisaged. The carbon release
reduction waiting time as in the case at from the toll infrastructure, CO release
Chennai airport. The barrier-less toll is to from incomplete combustion of fuels
complement with GNSS based Satellite during non-cruising period and slow-
Communication (SATCOM) technology down of vehicles in and around the toll
which can also address potential revenue plaza will be reduced.
leakages and operational inefficiencies in
the toll plaza. GCIS#6: amalgamation with existing
proven technologies – Integrate GNSS-
Select ‘Game-Changing Implementation based systems with proven technologies
Strategy’ (GCIS) for comprehensive like FASTag for hybrid tolling operations,
successful implementations are as ensuring compatibility with existing
follows, infrastructure and allowing phased
migration.
GCIS#1: Transition management
Strategy – Adopt the approach of “Think- GCIS#7: Hybrid Lane operations
Big, Start-Small and Scale-Fast” to ensure – Implement hybrid lanes that
a smooth transition to GNSS based tolling. accommodates both FASTag and GNSS
Pilot projects with limited deployment based system during the transition phase.
to be launched, evaluated, and scaled This will ensure service continuity and
incrementally to avoid system disruptions. minimize the user disruption.

GCIS#2: Incentives & Change GCIS#8: Deviceless solution – Part of

Management – Unlike the cost-effective Europe post the initial operation OBU
RFID based FASTag solution, GNSS based based GNSS solution framework now
On-Board-Units (OBUs) are very dearer have transcending into a software-based
and possess data privacy apprehensions offering which leverage on smartphones
due to active-active type i.e. near-to- to do the work for us.
real-time location data. Similar to the RFID
based FASTag transition strategy, one GCIS#9: Single System Operator or
lakh Free-of-Cost OBUs for the early-bird Empanelled vendor approach - Appoint
adapters. a single system operator or empanel
multiple vendors to streamline system
GCIS#3: Telematics and communication implementation and ensure uniform
Strategy adaption – Implement robust service delivery standards across the
telematics systems to enable real-time network.
tolling while ensuring strict data privacy
measures. Focus on anonymizing location GCIS#10: Phased Implementation -
data to build trust among private vehicle Beginning with commercial vehicles
users who may be hesitant to share their (79% highway road usage contributor),
location details. to ensure success and scalability and
then focusing on the private self-owned
GCIS#4: Road Safey and value-added vehicles (21% highway road usage
services – The OBU can be complemented contributor).
with edge intelligence, such that, in
case of prolonged non-movement, it
shall proactively engage with driver for
identification of any challenges and
report for necessary support in case of no
response.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 5

GCIS#11: Existing Vs New Vehicle OBU options, and transparent consent
commissioning - Mandate GNSS OBUs for mechanisms for data sharing.
all new vehicles during manufacturing,
while retrofitting existing vehicles in a GCIS#19: Reconciliation, Dispute
phased manner through partnerships with resolution - Create a centralized system
hardware vendors and service centres. for reconciling toll transactions and
addressing disputes. Use AI tools for
GCIS#12: Stakeholder Collaboration automated tracking, resolution, and
-Engage government authorities, private escalation management.
toll operators, technology vendors, and
users to align interests, address concerns, Some of key Industry takeaways are as
and facilitate smooth deployment. follows,

GCIS#13: Policy and Legal Framework - • Data Analytics & Predictive market
Develop robust policies for data privacy, would deep data lake of near-to-real-
user consent, and opt-in/opt-out time vehicular data across tollable
mechanisms. Establish legal enforcement roads. Large synthetic data that gets
for non-compliance and ensure users’ churned from such engines would be
rights are protected. Monetizable and act as a potential
revenue source in future.
GCIS#14: Public Awareness Campaigns
- Educate users on the benefits of • Backward integration for Insurance
GNSS-based tolling, such as reduced Agencies plays – As part of rapid
emissions and congestion, through customer accusation strategy the OBU
awareness programs, advertisements, are offered with Value Added Services
and community engagement. (VAS) such as data exchange platform

GCIS#15: Central-State Joint operations • Dynamic Toll usage pricing –

- Foster collaboration between central ‘cruising-period’ – in western services
and state governments to address the navigation services are offered
regional needs, enforce tolling regulations as a value-added services whereby
uniformly, and ensure seamless when driver share the destiny location
integration of national and local tolling
systems. • Advanced Driver Assistance Systems
(ADAS) - help drivers operate a vehicle
GCIS#16: Value-Added Benefits - Offer safely driver behaviour & Journey Risk
services like golden-hour emergency Management, driver credit rating
assistance, dynamic insurance premium
adjustments using actuarial science, and • GIS Spatial based offering – existing
data-based traffic analytics to enhance road geometry, accidents layers
user value and adoption. data, alternative routes for untollable
route segment, Traffic behaviour and
GCIS#17: Anomalies management - Set roadside assistance, enforcements
up automated systems to detect and
manage discrepancies in tolling data, • Product to Software model - Provides
user transactions, or map matching. a green field for software based GNSS
Use AI-driven analytics for quick issue solution on mobile – SATag mobile
resolution. compatible software solutions which
are cost-effective and easy to use.
GCIS#18: Data privacy and consent - These solutions are extensively used in
Incorporate strict data privacy norms like European countries.
anonymization of personally identifiable
information (PII), “right to be forgotten”

6 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 • AI & LLM market - assisted driving 1. Environmental Impact: Decreases
service and support in anomaly carbon emissions by 5 million tons
detection and management for e.g. annually through reduced idling at
1) Whenever Vehicle crosses the toll plazas.
influence length of particular Toll
Plaza(s) 2) Whenever vehicle makes a 2. Enhance Environmental
U-Turn 3) Whenever vehicle leaves the Sustainability: Reduces emissions
GNSS stretch 4) Whenever OBU turns and fuel wastage at toll plazas,
red (no balance/OBU malfunctions) supporting India’s goal to reduce
5) Vehicle Stopped on Highway GDP emission intensity by 45% by
beyond defined time limit 6) Any other 2030.1
occasion decided by the Authority
3. Cost Efficiency: Saves
Globally there is rapid change trends in approximately Rs. 12,000 crores
tolling ecosystem such as, a) dynamic annually in fuel expenses through
/ proportionate Road Usage charges b) improved traffic flow and reduced
adoption of more edge intelligent Toll vehicle idle time.
management device c) transition to
Outcome#3: Improved Revenue and
contactless & mobile-first approach d)
Operational Efficiency:
more real-time and active-active instead
passive static toll plaza-based data. 1. Revenue Assurance: Increases
toll collection efficiency and
The key outcomes of envisaged GNSS
transparency by 15-20%.
based Barrierless tolling solutions includes
2. Revenue Growth: Adds up to Rs.
Outcome#1: Improved Traffic Flow and
10,000 crores annually in additional
User Experience:
revenue.
1. Improved Traffic Flow - Eliminate
3. Centralized Tolling Platform:
delays at toll plaza, reducing
Processes real-time data,
average travel time by 20-30%.
streamlines billing, and enhances
2. Free flow Traffic: Removes queues, enforcement mechanisms.
ensuring smoother highway
journeys across India.

3. Time Savings: Reduces travel

delays by up to 30%, saving 8-10
minutes per toll point on average.

4. Improve User Experience: Enables

fast, hassle-free toll payments for
commuters.

5. User Convenience: Offers multiple

payment options, including UPI
and FASTag integration, for added 1 [Link]
flexibility. aspx?PRID=1885731
Outcome#2: Enhanced Environmental
Sustainability:

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 7

Outcome#4: Advanced Technology Outcome#5: Security and Scalability
Integration:
1. Enhanced Security: Ensures robust
1. GNSS-Enabled Onboard Units data protection, preventing toll
(OBUs): Installed in vehicles to fraud and safeguarding user
calculate tolls based on distance privacy.
traveled, ensuring accurate
charges. 2. Real-Time Monitoring: Enables
centralized tracking, improved
2. Distance-Based Fairness: enforcement, and operational
Implements prorated tolling based visibility.
on actual kilometers traveled for
fair and equitable charges. 3. Scalability: Easily extendable to
new highways and urban corridors
3. Indian Regional Navigation without significant infrastructure
(NavIC): Leverages L-band and investments.
S-band satellite communications
(SatCom) for reliable and cyber- GNSS-based barrierless tolling is a
secure tolling operations through transformative approach to modernizing
redundancy overcoming the India’s highway infrastructure. By
limitations of ionosphere. implementing this solution, India
can achieve significant economic,
4. Seamless Payment Integration: environmental, and user-experience
Facilitates automatic toll benefits. A phased rollout, supported
deductions through regulated by pilot projects, robust stakeholder
digital payment aggregator collaboration, and public education,
gateways. will ensure successful adoption and
position India as a global leader in smart
5. Ensure Revenue Assurance: transportation systems.
Increase toll collection efficiency
and transparency by 15-20%.

8 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 Existing
Ecosystem

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 9

 1. Existing Ecosystem Highway Commute

1.1 Key Stakeholder Roles & (NPCI) network and issues the NETC Tag
to vehicle owner for the payment through
Responsibilities NETC System. The issuer bank ‘owns’ the
customer by managing the account
The Ministry of Road Transport & including the providing of customer
Highways envisages to implement Global services like dispute management.
Navigation Satellite System (GNSS) based
Electronic Toll Collection (ETC) in India NPCI : NPCI facilitates NETC Transactions
to increase the efficiency of the Tolling among all member banks participating
operation in line with the global practices. in ‘NPCI network’. Further NPCI acts as
In this regard, the National Highways centralized clearing and settlement body
Authority of India (NHAI) through its to settle the transactions and fee amount
promoted Company M/s Indian Highways among the member banks.
Management Company Ltd (IHMCL),
which oversees the National Electronic Toll Plaza Operator/Concessionaire : The
Tolling Collection (NETC) program, has Toll Plaza is the location where the vehicle
been entrusted with the responsibility to identification record for toll payment is
devise the action plan and implement the generated. To enable the same the Toll
GNSS based ETC across India. Plaza Operator /Concessionaire sets up
a Toll Management System at the Toll
The Centralized Toll Charger ensures Plaza that includes infrastructure like
Map Making of GNSS stretch, Correlation the RFID transceiver, Automatic Vehicle
/ Validation of Chainage and Geo- Classification system, Weigh in Motion
Reference, Receiving Anonymised Pings system, CCTV Cameras and Toll Plaza
from AIS AIS 140 VLT Device (OBU), Map Server for the acceptance of NETC Tag
Matching, Network based Digital Routing, for the payment through NETC Payment
distance estimation, toll parameter, System.
Acquirer Bank - The Toll Charger shall send System Integrator : The System integrator
the calculated User Fee to be charged to provides the Toll Management system for
a GNSS Vehicle to the Acquirer Bank which the Toll Plaza Operator / Concessionaire
will then follow same payment protocol as
FASTag system. The Toll Charger will also Central to the operation is the Telematics
facilitate the road user to see the path Billing Centre (TBC), which ensures the
travelled by their GNSS vehicle on a map accurate calculation of tolls based on
by clicking a link shared to them by Issuer the “Pay as You Use” principle. The TBC
Entity through SMS. manages map creation, correlation
of chainage and geo-references, and
Tag Holder : The Tag Holder is the vehicle processes anonymized vehicle data
owner (also referred to as the road user) received from GNSS-enabled On-Board
who enrolls for an NETC Tag (FASTag) Units (OBUs – Eg. AIS 140 VLT Device). It also
with the issuing bank by providing a oversees enforcement mechanisms such
bank account number (Saving, Current, as Automatic Number Plate Recognition
Prepaid Account etc.) that is linked to the (ANPR) and geofencing while providing
NETC Tag ID. users with toll details via issuer entities.
Issuer Bank : The Issuer Bank is a member of Financial institutions, including
the National Payment Corporation of India acquirer banks and issuer entities, are

10 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 responsible for processing toll payments, Stakeholders from the automotive,
resolving disputes, and managing insurance, and logistics sectors are
customer interactions. The GNSS system instrumental in the adoption of GNSS
integrates seamlessly with existing tolling. Automotive OEMs ensure vehicle
payment protocols, offering a user- compatibility with GNSS systems, while
friendly experience. The TBC shall send insurance companies leverage data for
the calculated User Fee to be charged innovative products like pay-as-you-
to a GNSS Vehicle to the Acquirer Bank drive schemes. Logistics operators
which will then follow same payment benefit from distance-based tolling,
protocol as FASTag system. The TBC will enhancing fleet efficiency and cost
also facilitate e the road user to see management.
the path travelled by their GNSS vehicle
on a map by clicking a link shared to them By involving a comprehensive network
by Issuer Entity through SMS. of stakeholders, India’s GNSS-based
tolling system is set to revolutionize
Hardware vendors, particularly OBU
tolling operations, reinforcing the
manufacturers, play a critical role
country’s position as a leader in
by developing tamper-resistant and
reliable devices tailored for Indian road transportation innovation.
conditions. These OBUs interact with
satellite systems, including India’s NavIC,
ensuring precise geolocation and toll
computation.

SATCOM vendors support uninterrupted

satellite communication, leveraging
GNSS constellations to deliver robust
and scalable services ensuring accurate
vehicle tracking and data transmission. It
acts as redundancy to address potential
connectivity issues.

Existing toll operators collaborate

during the transition to integrate their
infrastructure with GNSS systems,
facilitating a hybrid tolling phase that
accommodates both FASTag and GNSS
tolling. Technology providers develop
the platforms necessary for data
processing, billing, and compliance
with privacy standards, while telecom
providers enable seamless real-time
data transmission.

Law enforcement agencies ensure

compliance with tolling regulations,
addressing violations such as bypassing
toll routes or tampering with devices.
These agencies utilize tools like ANPR,
geofencing, and the VAHAN system to
enforce penalties and maintain system
integrity.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 11

1.2 Electronic Toll • same month, Chile began the mass
replacement of annual payment
Collection – Global booths with ETC to decrease
Journey footprint congestion and increase the adoption
of ETC devices.
Electronic Toll Collection Global Study in
mid-2015, the electronic tolling landscape • July 2018, Atlantia signed an agreement
has changed markedly in almost every with Fiat Chrysler Automobiles to
region of the world: enable full integration of Telepass
devices into new Jeep models.
• November 2015, Russia launched
the (then) world’s largest HGV toll; • India mandated the sale of RFID ETC
collecting per km fees via GNSS across tags with all new 4 wheeled vehicles
a network of more than 51,000 kms of and their use in all commercial
road. vehicles.

• April 2016, Belgium launched • South Korea began replacing all

nationwide tolling for HGVs using GNSS manual toll plazas with a nationwide
technology based on the German ‘smart tolling’ infrastructure based on
model. ANPR charging alongside the existing
DSRC or OBUs.
• Japan introduced ETC 2.0, a new
national tolling system with data- • Singapore is switching over from
driven, value-added services at its DSRC-based tolling system, used
heart. primarily for congestion pricing, to
GNSS Free flow tolling in the year
• Australia became the first toll operator 2020 that will have an island-wide
to enable GNSS/geolocated payments
coverage
with the launch in late 2017.

• February 2018, Audi became the first

passenger car OEM to announce full
integration of an interoperable ETC
device in the US.

12 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 1.3 Electronic Toll Generation-3 : On-Board electronic
device for automatic vehicle identification,
Collection – India’s Passive RFID-Tag affixed / DSRC OBU
Journey so far. installed on vehicle that is detected by
readers located in toll lanes or mounted
In 2012, India decides to the embrace on gantries, Video ANPR recognition of
Electronic Toll Collection (ETC) Approach, vehicle
the flowing are various generations of the
ETC journey in India. Generation 4: GNSS-based OBU installed
on vehicle, OBU tracked centrally by a
Generation 1: Manual Tolling & Cash Telematics Billing Centre for determining
Collection journey distance and toll calculation
based on a ‘per km’ tariff.
Generation-2: Vignette / Toll Sticker and
A printed sticker on the vehicle identified
as proof of pre-paid toll

1.4 Electronic Toll the Tag ID is absent in NETC Mapper,

it will respond that the Tag ID is not
Collection – Process registered.
Workflow 4. After successful validation of Tag
The above diagram illustrates transaction ID from NETC Mapper, acquirer host
flow of the NETC system. The Transaction calculates the appropriate toll fare
from the Toll Plaza is sent to the acquiring and initiate a debit request to NETC
system. The Acquiring System validates system.
these transactions and send it to NETC
5. NETC System will switch the debit
Switch. NPCI route these transactions to
request to the respective issuer
the respective Issuer Bank which in turn
bank for debiting the account of the
debit the tag holder account.
customer.
1. Whenever the vehicle passes through
6. Issuer host shall debit the linked tag
the ETC lane of the Toll Plaza, the Toll
holder account and sends a SMS alert
Plaza system captures the FASTag
to the tag holder. The Issuer host shall
details like (Tag ID, TID, Vehicle class,
send the response message to NETC
etc.) and sends it to the Acquiring bank
system. If the response is not sent
for processing.
within the defined TAT, the transaction
2. The Acquiring bank sends a request to are considered as Deemed Accepted.
the NETC Mapper to validate the tag
7. NETC system will notify the response to
details.
acquirer host.
3. Once the Tag ID is validated, NETC
8. Acquirer host will notify to respective
Mapper responds with details like
toll plaza system.
Vehicle class, VRN, Tag Status etc. If

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 13

1.5 Existing Tolling State Highways (SH): 1,79,535 kilometers
(55% of the total network).
Ecosystem
The total number of toll plazas stands at
India’s tolling ecosystem has undergone 1,375 (994 on National Highways and 381
a significant transformation, evolving on State Highways).
from manual toll collection systems to
advanced electronic methods. It is a critical 1.5.1 Toll Revenue-to-Population
component of its rapidly expanding road Ratio: A Global Perspective
network, which has grown by 59% over
the past nine years, reaching 6.6 million The toll revenue generated in India, though
km in 2023. This progression reflects the impressive, reveals an untapped potential
country’s commitment to enhancing when compared to global benchmarks:
efficiency, reducing congestion, and
aligning with global best practices. • India: Toll revenue in FY 2022-23 stood
Comparative insights from global tolling at approximately ₹54,144 crore (USD
models can further contextualize India’s ~6.7 billion) for a population of 1.4
progress and areas for improvement. billion, translating to a per capita
Alongside tolling advancements, there is contribution of USD ~4.78 annually.
an urgent need to address road safety
• United States: With a population of
concerns, as the country loses over 1,50,000
331 million and toll revenue exceeding
people annually to road accidents, with
USD 20 billion annually, the per capita
the majority being productive working-
contribution is approximately USD
age individuals.
60.42—over 12 times higher than India.
India’s early toll collection systems
• Singapore: Despite its smaller
were predominantly manual, resulting
population of 5.5 million, Singapore’s
in inefficiencies such as long wait
advanced Electronic Road Pricing
times, revenue leakages, increased
(ERP) system generates approximately
fuel consumption, and environmental
USD 150 million annually, equating to
pollution. The lack of standardized toll
USD 27.27 per capita.
calculation mechanisms compounded
these challenges. By contrast, countries • Dubai (UAE): The Salik toll system
like Germany and Singapore had in Dubai generates about USD 350
already begun adopting automated million annually for a population of
tolling systems, emphasizing India’s 3.5 million, translating to USD 100 per
technological lag during that period. capita.
As per the Ministry of Road Transport and
1.5.2 Toll Revenue as a
Highways (MoRTH) Year-End Review 2023,
India’s extensive highway network spans Percentage of GDP
3,25,680 kilometers1, comprising:
Comparing the contribution of toll
National Highways (NH): 1,46,145 kilometers revenues to national GDP offers further
(45% of the total network). context:

• India: Toll revenue contributes ~1% of

1 [Link] GDP, with projections to increase to
1.5% by 2030.
PressReleaseIframePage.
aspx?PRID=1993425#:~:text=National%20 • United States: Toll revenue constitutes
Highways:%201%2C46%2C145%20 approximately 0.15% of GDP, reflecting
km,Other%20Roads:%2063%2C45%2C403%20 the extensive reliance on federal
km funding for highway projects.

14 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 • Singapore and Dubai: Toll revenues [Link] Expansion and Current Status
represent ~0.4% of GDP, showcasing
how smaller nations with high-tech The FASTag system now covers:
tolling systems effectively monetize
• Coverage: Over 1,200 toll plazas (994
road infrastructure.
National Highway toll plazas and 339
State Highway toll plazas) support
1.5.3 Journey of FASTag in India
FASTag operations.
To address these inefficiencies, the National
• Transaction Penetration: Over 98%
Electronic Toll Collection (NETC) program,
penetration in toll transactions by
branded as FASTag, was launched as a
FY 2022-23, with over 1 crore daily
flagship initiative by the Ministry of Road
transactions in February 2023. The
Transport and Highways (MoRTH) and
total number of FASTAG issued is 8.38
the National Highway Authority of India
Cr. The Cumulative ETC transaction
(NHAI). The FASTag program, initiated in
from 2016-17 to 2022-23 is 1146 Cr with
2010 and developed with the guidance
a total revenue of INR 1.92 Lakh Crore.
of a committee led by Nandan Nilekani,
leverages Radio Frequency Identification • Revenue Growth: Significant revenue
(RFID) technology to enable seamless growth, with collections rising from INR
electronic toll payments. 3,352 crore in FY 2018 to INR 54,144
crore in FY 2023. As per MoRTH, Tolling
The FASTag journey includes:
revenue is projected to contribute
1-1.5% of GDP, reaching approximately
₹1.3 lakh crore by 2030.
2012: Indian H ighways Management
Company Limited (IHMCL) was formed
• Reduction in wait times: Average wait
to implement and manage electronic time at toll plazas dropped from 734
tolling systems. A c losed-loop seconds in 2014 to just 47 seconds in
electronic toll system was piloted 2023.
between Mumbai and Ahmedabad.
• Economic savings: Estimated annual
fuel savings of INR 70,000 crore.
2016: Introductio n of N ETC FASTag, an
interoperabl e RFID-based system • Environmental impact: Reduction
enabling seamless toll collection
across highways, managed by NPCI.
of CO2 emissions by 978,000 tonnes
annually.

2017: G overnment mandated F ASTags • 40+ member banks participating

for all new vehicles and deployment in the NETC ecosystem as issuers or
of dedicated FASTag lanes at National acquirers.
Highway toll plazas.
• In addition to tolling, FASTag has been
2018: Transition of all National Highway extended to parking payments and
fee plaza lanes to FASTag-enabled integrated with systems like GSTN and
lanes. ULIP for multi-purpose use, reflecting
its versatility and widespread adoption.
2020: Mandating FASTag for all vehicles, • Environmental benefits include
including those sold before December
reduced idle time at toll plazas, saving
2017, and i ntegrating FASTag ID into
vehicle insurance renewals from April fuel worth INR 70,000 crore annually
2021. and cutting CO2 emissions by 978,000
tonnes​.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 15

Globally, countries like the United States 3. Advanced Traffic Management: IoT-
and Canada utilize GNSS-based tolling powered Toll Monitoring and Control
systems, offering seamless “pay-as- Centers (TMCC) provide real-time
you-go” solutions. While India’s FASTag analytics, enhancing operational
program provides a strong foundation, efficiency.
transitioning to advanced systems could
4. Barrierless Tolling Solutions: Efforts
unlock further benefits.
like hackathons have explored GPS-
based tolling and Intelligent Traffic
Management Systems (ITMS), which
aim to eliminate barriers at toll plazas
and enable “pay-as-you-use” models.

[Link] The Path Ahead: Barrierless

Tolling and Beyond

The transition from RFID-based systems

to GNSS-enabled tolling promises to
redefine India’s tolling ecosystem. By
adopting barrierless tolling, India aims to:

• Eliminate congestion: Enable

seamless vehicle movement without
physical toll plazas.

• Enhance fairness: Introduce distance-

based tolling for equitable charges.

• Boost revenue: Improve collection

efficiency while reducing leakages.

[Link] Tackling Challenges: A

1.5.4 Innovations and Collaborative Approach
Expansions: Building on the While the journey has been transformative,
Foundation challenges such as data privacy,
scalability, and user adoption remain.
Building on FASTag’s success, India Proposed solutions include:
is exploring the next phase of tolling
innovations: • Free OBU distribution campaigns,
similar to initial FASTag promotions.
1. GNSS-Based Tolling: Trials on major
corridors like the Delhi-Mumbai • Phased implementation: Focus on
expressway are demonstrating commercial vehicles in Phase 1, with
the feasibility of satellite-enabled, gradual expansion to private vehicles.
barrierless tolling systems.
• Stakeholder engagement:
2. Integration with Value-Added Collaboration with state governments,
Services: FASTag is now used for insurance companies, and technology
parking payments, vehicle tracking, partners for a unified approach.
and GST e-way bill integration,
illustrating its multifunctionality.

16 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 [Link] Revenue Leakage Mitigation The amalgamation of FASTag and
Framework GNSS ensures a smooth transition.
FASTag balances could be utilized for
• Source Leakages: GNSS payments, ensuring continuity.
Standardization of processes and
Identify unmonitored Deploy GNSS-based integration with banks and payment
alternative routes  systems. gateways are critical for scalability and
efficiency.
• Technology Upgrade:
[Link] Impact Analysis: Moving to GNSS
Passive Active Monitoring
 • Setup Costs: GNSS reduces costs by
RFID via GNSS.
20-30% compared to traditional toll
plazas.
• Operational Inefficiencies:
• Environmental Savings: Annual CO2
Optimize toll Reduced manpower emissions drop by over 3 million tons.
plaza layouts  dependency.
• Revenue Growth: Projected annual
increase of ₹15,000 crore post-leakage
[Link] Transition to Advanced Tolling
mitigation.
Ecosystems

Current System (FASTag)  GNSS 1.5.5 Road Safety: A National

Integration  Dynamic Pricing Model Imperative
Implementation  Continuous Monitoring
In 2023, the country recorded
and Optimization
approximately 1.73 lakh (173,000) fatalities
RFID vs. GNSS: RFID provides data only due to road accidents, averaging 474
at specific checkpoints, while GNSS deaths daily, or nearly one death every
enables continuous tracking and tracing. three minutes2. This marks the highest
Integrating GNSS with ANPR systems offers annual toll since national record-keeping
seamless monitoring. began. Additionally, around 4.63 lakh
(463,000) individuals sustained injuries in
Satellite Communications and GNSS: these incidents, reflecting a 4% increase
India’s NAVIC satellite system offers from 2022.
greater accuracy (1-2 meters) compared
to GPS (5 meters). Combining L-band and Highways, including national and state
S-band frequencies provides redundancy routes, are particularly hazardous.
and minimizes ionospheric interference. National highways and expressways
Global collaborations on GNSS ensure accounted for 39.2% of road accidents
robust and reliable systems, as seen in and 36.2% of deaths, while state highways
Europe’s Galileo and China’s BeiDou. contributed to 23.1% of accidents and
26.8% of fatalities3. This data underscores
Dynamic Pricing and Data Analytics: the urgent need for enhanced safety
Dynamic pricing models, based on measures on these major roadways.
demand and congestion, are gaining
traction globally. India’s toll operators 2 [Link]
could leverage large datasets for com/india/474-lives-were-lost-daily-in-
predictive analytics, akin to Google and road-crashes-in-2023-says-govt-data/
OpenAI’s capabilities, to optimize toll articleshow/[Link]
collection and road usage. 3 [Link]
speak/why-are-road-accidents-in-india-on-the-
rise

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 17

Recognizing the socio-economic impact associations to promote
of road accidents, the Centre of Excellence responsible driving practices.
for Road Safety (CoERS) at IIT Madras, in
collaboration with the Greater Chennai b. Incentivizing compliance with road
Traffic Police (GCTP), has spearheaded safety norms such as wearing
transformative initiatives to enhance road helmets, using seatbelts, and
safety awareness and driver behaviour. adhering to traffic signals.

Key initiatives include: [Link] Data-Driven Insights for Safer

Roads
1. Zero Accident Day (ZAD) Campaign:
The integration of tolling data and road
a. A comprehensive 20-day safety systems provides an opportunity
campaign aimed at achieving zero for predictive analytics and proactive
road accidents, involving capacity- interventions:
building workshops for diverse
stakeholders, including bus drivers, • Accident Analytics: Leveraging toll
schoolteachers, students, and the and vehicle tracking data to identify
general public. high-risk areas and deploy safety
interventions.
b. Simulator-based training for
Metropolitan Transport Corporation • Real-Time Monitoring: GNSS-based
(MTC) drivers to improve hazard tolling systems offer centralized
perception and driving etiquette. tracking, allowing authorities to
respond swiftly to incidents and
c. Community engagement through optimize traffic management.
activities like gamified learning for
children, flash mobs, and creative [Link] Global Comparisons and Road
competitions to promote road Safety Models
safety awareness.
India’s road safety initiatives can
2. Scientific Crash Investigations: be contextualized against global
benchmarks:
a. Training 69 Investigating Officers
(IOs) to perform scientific crash • Singapore: The Electronic Road
analyses, enabling root cause Pricing (ERP) system not only ensures
identification and actionable seamless tolling but also reduces
insights to prevent future accidents. congestion, leading to fewer accidents.

3. Technology-Driven Solutions: • Sweden: Vision Zero campaigns

emphasize behavioral change and
a. Development of innovative GNSS safer infrastructure to minimize road
and ANPR-based tolling systems fatalities, serving as a model for India’s
by KritiLabs, in collaboration with Zero Accident Day.
CoERS, to ensure barrierless tolling
while enhancing safety through • Germany: Advanced crash
advanced vehicle tracking and investigation frameworks and GNSS-
video evidence systems. integrated tolling systems improve
enforcement and accident prevention.
4. Stakeholder Engagement:

a. Partnerships with e-commerce

platforms, IT firms, and residential

18 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 1.6 Key Challenges in the Fixed Stretch Charging vs.
Ecosystem Prorated Usage Charging
India’s existing toll system predominantly
Resource Dependencies employs fixed stretch charging, where
• Infrastructure and Manpower: India users pay a set fee regardless of the actual
has 1,192 toll plazas as per IHMCL Annual distance travelled. This approach lacks
report 2022-23 with 853 toll plazas in fairness and does not accurately reflect
national highway and 339 toll plazas road usage, potentially leading to user
in state highway, requiring significant dissatisfaction and revenue inefficiencies.
infrastructure and personnel for Approximately 25% of highway users
operations. Approximately 70% of toll travel partial stretches but are charged
plazas face operational inefficiencies for the entire tollable stretch, leading to
due to outdated technology or lack of widespread dissatisfaction. A pilot study
skilled manpower. on the Delhi-Mumbai corridor using
GNSS-based prorated tolling showed a
• Technology Adoption: The adoption 20% increase in user satisfaction and a
level of technology in Indian 15% reduction in toll disputes.
infrastructure projects is limited,
resulting in inefficiencies and increased High Costs of Replication and
operational costs. This technological Scalability
lag hampers the modernization of
toll collection systems and affects The current toll infrastructure involves
overall project execution. Only 60% significant capital expenditure for the
of toll plazas in India are equipped construction and maintenance of toll
with ETC (Electronic Toll Collection) plazas, as well as the deployment of
infrastructure as of 2023, indicating a manpower. The average cost for setting up
gap in technology adoption. a single toll plaza is around ₹50-60 crore,
excluding operational and maintenance
Passive Monitoring vs. Active costs. The current ETC model incurs 15-
Monitoring 17% of total revenue in operational costs,
compared to GNSS-based systems, which
The current toll collection system relies could reduce this to 10-12%. These high
heavily on passive monitoring methods, costs pose challenges for replication and
which are less effective in real-time scalability, especially in remote or less
enforcement and detecting violations. Toll economically viable areas.
revenue losses in India were estimated
at ₹15,000 crore annually in 2022 due to Sustainability in Remote Areas
ineffective enforcement mechanisms
like passive monitoring. This includes Implementing and maintaining toll
vehicles bypassing toll plazas through collection systems in remote regions is
unmonitored alternative routes​. The often unviable due to high operational
limitation of Passive monitoring leads costs and low traffic volumes. This
to revenue leakages and challenges unsustainability leads to inadequate
in maintaining system integrity. While infrastructure development in these
the real-time active monitoring could areas, affecting regional connectivity and
reduce toll revenue leakages by up to economic growth. Approximately 30% of
30%, highlighting the need for dynamic India’s highways pass through remote or
enforcement systems. low-traffic regions where toll revenue fails
to justify operational costs. For instance,
toll plazas in such regions often operate
at a deficit of ₹2-3 crore annually.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 19

Revenue Loss from Leakages Delayed settlement times
It has been estimated that India loses 12- These issues stem essentially from the
15% of its toll revenue annually (₹12,000- system being an ‘Off-line’ system with the
₹15,000 crore) due to toll evasion by vehicle identification records up-loaded
vehicles using alternative routes like to the Acquirer and the Exception lists
local roads and villages​. This evasion (Blacklists) downloaded from the Acquirer
undermines the financial viability of only at periodic intervals. Depending on the
toll projects and leads to inequitable quality of data connectivity between the
road usage. On the Eastern Peripheral Toll Plaza server and the Acquirer system,
Expressway, toll leakage was reduced an element of latency is introduced
by 25% after implementing GNSS-based into the system resulting in a delayed
monitoring systems in a pilot program​. settlement as well as the situation when
blacklisted vehicles are allowed through
Increased Waiting Times and the plaza as the updated blacklist has still
Associated Impacts not reached the toll plaza server.

• Fuel Consumption: Manual toll Further, inadequate presentation of

collection methods result in longer vehicle evidence to NPCI by the toll
waiting times at toll plazas, leading plaza operator, caused by inadequate
to increased fuel consumption for accuracy of the AVC system & quality of
idling vehicles. This inefficiency not image capture, also results in delayed
only raises operational costs for users settlements.
but also contributes to environmental
Although NPCI has introduced a feature
pollution. Vehicles idling at toll plazas
that can result in on-line transfer of
consume an estimated 1.4 billion litres
vehicle identification records to the
of fuel annually, resulting in a financial
Acquirer, the implementation of the same
loss of over ₹2,000 crore and emitting
by Toll Management System providers
3 million tons of CO2.
has hardly progressed.
• Driver Fatigue and Road Safety:
Extended waiting times contribute to
driver fatigue, which is a significant
factor in road accidents on Highways
in India. The lack of efficient toll
collection systems exacerbates this
issue, compromising road safety and
increasing the risk of accidents.

Addressing these challenges requires

a comprehensive overhaul of the toll
collection system in India, focusing
on technological integration, efficient
resource management, and the
implementation of fair usage-based
charging mechanisms to enhance
efficiency, reduce revenue leakages, and
improve user satisfaction.

20 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 1.7 Pilot Interventions • Delhi-Mumbai Corridor GNSS Pilot
(2020)7: India’s first large-scale GNSS-
• Dwarka Expressway (2024)4: based tolling pilot was conducted on
Inaugurated in March 2024 by this corridor. Utilizing NavIC, India’s
Prime Minister Narendra Modi, this satellite navigation system, combined
expressway exemplifies India’s move with international GNSS constellations,
toward modern tolling systems. The the system calculated toll charges
project leverages FASTag readers and based on the distance traveled
overhead ANPR cameras to enable within geofenced zones. This initiative
automatic toll deduction for vehicles demonstrated the feasibility of
traveling at speeds of up to 100 eliminating toll plazas and highlighted
kilometers per hour. This intervention benefits such as fair toll charges,
significantly reduced travel delays, reduced congestion, and streamlined
congestion, and environmental impact operations.
while ensuring operational efficiency.
• Eastern Peripheral Expressway
• Bangalore-Mysore Expressway (2018)8: Designed as India’s first
(2023) : Another landmark project,
5
highway with an advanced ETC
this expressway employs hybrid system, this expressway combines
tolling mechanisms, combining RFID RFID-based FASTag with AI-
and ANPR technologies. The system powered video analytics. The
calculates tolls based on entry and
system supports multi-lane free-
exit points, providing a seamless and
efficient experience for commuters.
flow tolling, reducing vehicle idling
The pilot highlighted the potential of time and emissions. The pilot
hybrid solutions in improving tolling successfully demonstrated the
accuracy and reducing operational integration of high-speed traffic
costs. with electronic tolling systems.

• Mumbai-Pune Expressway (2022)6:

The Mumbai-Pune Expressway
has enhanced tolling mechanisms
with ANPR and automated FASTag
integration, focusing on improving
compliance and ensuring toll revenue
accuracy, alongside reducing
congestion during peak hours.

4 [Link]
travel/travel-news/dwarka-expressway-to-
introduce-indias-first-free-flow-tolling-system/ 7 [Link]
articleshow/[Link] files/2021-06/[Link]
5 [Link] 8 [Link]
bangaloremysore-expressway-updates-key- cdpq-backed-maple-highways-acquires-
facts-latest-toll-rates nhais-eastern-peripheral-expressway-for-rs-
6 [Link] 6267-crore-in-largest-asset-monetisation-
pune-expressway transaction-in-highway-sector

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 21

1.8 Key findings of the Pilot Project

22 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 Envisaged
Solution

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 23

 2. Envisaged Indigenous Framework from
Global Learnings

The proposed Indian GNSS based Tolling Fintechs to be called “Issuer Entity” similar
Solution is a hybrid system in which the to the Issuer Banks under FASTag System.
existing Toll Plazas will have two or more The payment mechanism shall be similar
dedicated “GNSS Lanes” wherein the to the existing FASTag ecosystem. It is also
default position of barriers will be open for envisaged to start GNSS based Tolling
free flow of GNSS Vehicles. The lanes will with Commercial Vehicles then extended
have advance readers to identify GNSS to Private Car/Jeep/Van for own use in a
vehicles. Additional fees will be charged phased manner.
from non-GNSS vehicles entering GNSS
lanes. The GNSS Multi-lane Free-Flow The deployment of GNSS-based tolling
envisaged workflow is pasted below systems in India presents a significant
opportunity to design a solution that
The Toll Plaza will itself act as the is both efficient and adaptable, while
Stationary Enforcement Gantry in the keeping in mind India’s unique road
system. The system architecture includes networks and transportation needs. Using
a Centralized Toll Charger responsible a Fit-for-Purpose approach, this system
for distance & toll calculation of GNSS will integrate global best practices with
vehicles travelling on GNSS stretch. The solutions tailored specifically to the Indian
Toll Charger will receive pings (distance context, ensuring that the tolling system
and time stamp) of GNSS vehicles through is scalable, effective, and sustainable for
On-Board-Unit (OBU) fitted in the GNSS the long term.
vehicles. The OBUs of GNSS vehicles will be
onboarded with the Toll Charger through

24 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 Key Components of the Indigenous National Integration with Existing
GNSS-Based Tolling Framework Systems:

GNSS encompasses multiple alternate The framework will also ensure that the
satellite various countries as indicated system is interoperable across state
below. borders, with seamless integration into
existing tolling systems like FASTag. By
User-Focused Tolling Experience: aligning with NETC standards, India can
provide a unified tolling experience,
The new GNSS-based tolling system will
allowing vehicles to pass through toll
put the user experience at the forefront,
booths without facing delays or confusion.
ensuring that vehicles, regardless of their
This integration ensures that there is
type or age, can seamlessly participate
no disruption to the millions of vehicles
in the tolling process. By focusing on
already using FASTag, making the
simplicity, affordability, and scalability,
transition to GNSS tolling easier for users.
the system will make tolling convenient for
all vehicle owners across India. The goal Affordable Indigenous Devices:
is to make toll payments faster and more
efficient while offering clear payment A crucial part of the indigenous framework
options that ensure ease of use for both will be the development of cost-effective
vehicle owners and toll authorities. GNSS-enabled devices. These devices will
be designed specifically for the Indian
market, keeping in mind the diverse range
of vehicles and varying income levels of
vehicle owners. The devices will be easy to
install, durable, and affordable, ensuring
that even vehicles on the lower end of the
economic spectrum can benefit from the
tolling system.

Support and Collaboration with Local

Technologists:

The system will be built with the help of

Real-Time Data Infrastructure: local technology partners, ensuring that
it is not only technologically advanced
One of the core features of the framework but also adapted to Indian needs.
will be a cloud-based platform integrated Collaboration with homegrown tech
with cutting-edge technologies like big companies will allow for greater flexibility,
data analytics and machine learning. This faster troubleshooting, and local support,
platform will monitor and analyze traffic making the system more sustainable and
patterns, vehicle behaviors, and road manageable over time.
conditions in real time to determine toll
rates dynamically. This flexibility ensures Incorporating Global Learning and Best
that toll rates can be adjusted based on Practices
traffic density, road type, or peak hours,
While this framework is designed with
making the tolling system fair and efficient
India in mind, there are many lessons to
for users across different regions of the
be learned from global best practices
country.
that can improve the system’s efficiency
and future potential.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 25

Global GNSS Implementation Models: Data Privacy and Security:

Germany and Switzerland are examples With data privacy being a key issue in many
of countries that have successfully parts of the world, India’s tolling system
implemented distance-based tolling must prioritize data protection. Global
systems using GNSS. By charging vehicles examples, especially from the European
based on how far they travel, the system Union, emphasize the importance of
ensures fairness, as tolls are linked to handling personal and payment data
actual usage. This approach can be securely. The Indian system must ensure
replicated in India’s busy highways to that vehicle data is protected and that
manage congestion and ensure a more users’ privacy is respected, creating trust
efficient toll collection process. among vehicle owners and encouraging
widespread adoption of the system.
Singapore’s Electronic Road Pricing (ERP)
system, which uses a combination of GNSS
and onboard devices to charge vehicles
based on their location and time of travel,
can serve as a model for managing
urban traffic in cities like Delhi, Mumbai,
and Bangalore, where congestion is a
major issue. This system has successfully
reduced traffic jams and improved air
quality by encouraging more efficient
driving.

Futureproofing for Scalability:

One of the biggest advantages of the

GNSS tolling system is its ability to scale
and evolve over time. Drawing from
Environmental Sustainability:
global examples, the Indian system
can be designed to grow alongside A key benefit of GNSS tolling systems
advancements in technology. This is the reduction in vehicle idle time,
includes potential future upgrades like which leads to lower emissions. This is
5G connectivity, which could enable real- particularly important for India, where
time communication between vehicles air pollution is a growing concern. By
and toll systems, allowing for smart city reducing the time vehicles spend idling at
integration. toll plazas, the system can help improve
air quality. Additionally, the tolling system
The system should also be adaptable
could reward vehicles that follow eco-
to emerging technologies such as
friendly driving patterns, thus promoting
electric vehicles (EVs), ensuring that
sustainable transportation.
tolling remains effective and fair as the
transportation landscape evolves in India.

26 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 2.1 Tolling System and supports the government’s
vision for a seamless, efficient, and
Framework for India technology-driven tolling mechanism.
The National Highways Authority of The proposed framework offers a
India (NHAI) is poised to implement a phased and systematic approach
GNSS-based tolling system, marking a to ensure successful adoption while
transformative shift in toll collection on addressing key technological and
national highways. This initiative builds operational challenges.
on the success of the FASTag system

Framework for Implementing GNSS- • Gather feedback from stakeholders,

Based Tolling including drivers and transport
operators, to fine-tune operations.
1. Pilot Implementation
2. Hybrid Model Rollout
• To validate the efficiency and feasibility
of GNSS-based tolling, NHAI will: A hybrid approach ensures a smooth
transition to GNSS tolling:
• Launch pilot projects on high-traffic
corridors such as the Delhi-Mumbai • Introduce GNSS-enabled lanes
route, testing free-flow tolling via GNSS alongside existing FASTag
technology. infrastructure at toll plazas.

• Establish centralized Automatic Toll • Continue FASTag operations for

Collection Monitoring Centers for vehicles not equipped with GNSS
real-time data management and technology, allowing a gradual shift.
reconciliation during the pilot phase.
• Develop a phased plan for increasing
• Analyze pilot outcomes to assess GNSS lane coverage at major toll
technical performance, cost- plazas.
effectiveness, and user experience.
• Offer incentives for early adopters of
• Test interoperability between GNSS-based tolling, such as discounts
GNSS systems and existing tolling or priority services.
infrastructure to ensure seamless
integration.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 27

• Conduct trials to ensure the 5. Stakeholder Collaboration
coexistence of GNSS and FASTag
systems without operational conflicts. Partnerships will be key to successful
implementation:
3. Vehicle Equipment
• Collaborate with technology
To enable GNSS tolling, NHAI will focus on: providers for GNSS devices, vehicle
manufacturers for compatibility,
• Deploying On-Board Units (OBUs) for and telecom companies for network
accurate geo-position tracking and support.
automated toll calculations.
• Work with state and central authorities
• Setting up Points of Sale (POS) for to ensure compliance with regulatory
registration, distribution, and top-ups standards.
of GNSS-based tolling devices.
• Engage with logistics companies,
• Introduce a user-friendly mobile public transport agencies, and fleet
application for monitoring toll charges operators to address operational
and managing accounts. requirements.
• Establish quality standards and • Establish advisory committees with
certification processes for OBUs to representatives from academia and
ensure reliability. industry for expert guidance.
• Develop partnerships with vehicle • Coordinate with international
manufacturers to integrate OBUs organizations to adopt global best
directly into new vehicles. practices in GNSS-based tolling.
4. Infrastructure Development 6. Public Awareness Campaign
Robust infrastructure is critical for the To ensure widespread acceptance and
success of GNSS tolling: usage:
• Expand satellite and digital networks, • Conduct large-scale awareness
including data centers, to support initiatives to educate highway users
GNSS operations. on the benefits and operation of GNSS
tolling.
• Develop secure and efficient backend
systems for real-time transaction • Train toll operators and support staff
processing and data handling. on the new technology and processes.
• Set up disaster recovery and • Develop multilingual educational
redundancy measures to ensure materials to reach diverse user groups
uninterrupted tolling operations. across India.
• Deploy network monitoring tools to • Use digital platforms, including social
identify and address connectivity media and mobile apps, to spread
issues proactively. information effectively.
• Invest in cybersecurity measures • Organize roadshows and on-ground
to safeguard sensitive user and campaigns to demonstrate GNSS
transaction data. functionality and benefits.

28 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 7. Scalability and Full-Scale Rollout system, NHAI is set to redefine highway
infrastructure and tolling standards,
Building on the pilot’s success, NHAI plans driving India’s highways into a new era of
to: smart mobility.
• Gradually expand GNSS-based tolling
to all national highways, ensuring
nationwide coverage.

• Decommission traditional toll plazas,

achieving a fully barrier-free tolling
experience.

• Introduce regional rollout strategies

based on traffic density and readiness.

• Provide financial assistance or

subsidies to encourage the adoption of
GNSS OBUs by smaller vehicle owners.

• Create a task force to oversee the

nationwide implementation and
address challenges in real time.

8. Monitoring and Optimization

• Continuous improvement will enhance 2.2 Advantages of an

system effectiveness:
Indigenous GNSS
• Monitor performance metrics and user Framework
feedback to refine the system.
1. Efficiency in Toll Collection: The GNSS
• Incorporate dynamic pricing models system calculates tolls based on
and AI-driven traffic management kilometres travelled, which is more
for greater efficiency and user equitable than flat fees, reducing the
convenience. burden on short-distance travellers.
• Develop a feedback loop with real-time 2. Scalability: The system’s design
alerts for operational inefficiencies. allows for easy expansion as vehicular
density increases. The framework must
• Use predictive analytics to forecast
also consider India’s highly diverse
toll revenue and manage traffic flow
highway network, ensuring seamless
effectively.
integration of different toll domains
• Implement periodic audits and into one interoperable system.
evaluations to ensure compliance with
3. Sustainability: By eliminating
operational standards.
the need for vehicles to stop at
This framework provides a structured toll booths, the framework will
roadmap for NHAI to modernize toll reduce emissions caused by idling
collection through GNSS technology. It vehicles, contributing to India’s
ensures a seamless transition, addressing climate goals.
the technical, operational, and user-
related aspects of the implementation.
By adopting this advanced tolling

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 29

Game Changing
Strategic
Implementations

30 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 3. Game Changing Strategic Implementations

Transforming the existing toll collection and secure India’s technological

system into a barrierless, satellite-based independence.
tolling system requires robust policy and
technological innovations. It necessitates 2. Centre and State Government Joint
coordination between central and state Operations The GNSS-based toll
governments, a rethinking of toll-charging system will require close collaboration
models, and addressing user adoption between the central and state
challenges. Below are some key policy governments. While the central
and technology considerations that will government would oversee policy
shape the success of this transformation. formulation and system standards,
state governments will manage
local enforcement and data-sharing
protocols. Incentives like revenue-
sharing arrangements can encourage
states to adopt the system swiftly.
Additionally, central support in
infrastructure funding will ease the
financial burden on states.

3. Technology Choice – Single or

Multiple Options? A major decision is
whether to opt for a single technology
(e.g., GNSS) or to support multiple
tolling technologies, including device-
less solutions like ANPR (Automatic
Number Plate Recognition). A single
technology simplifies the system
and reduces administrative costs,
but supporting multiple technologies
allows flexibility for different regions
and vehicle types. However, this could
3.1 Policy Considerations complicate interoperability, requiring
1. Barrierless Toll – Atmanirbhar careful management.
Solution Design The new system 4. Equipment Purchase from Single
should prioritize self-reliance in its or Empanelled Vendors Whether
design, promoting Indian vendors equipment should be sourced from
and technology providers. This aligns a single vendor, or an empanelled
with the Atmanirbhar Bharat initiative, list remains an important policy
ensuring that critical components, question. Empanelment of multiple
such as OBUs, GNSS hardware, and vendors ensures competitive pricing,
software platforms, are either sourced innovation, and avoids monopolistic
locally or developed with strong
local collaboration. This will build
national capacity, boost employment,

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 31

 risks, fostering a healthy market heavily on collecting and processing
ecosystem. However, it also requires vehicle movement data, which raises
stringent quality control and significant data privacy concerns.
adherence to standardization. Policy frameworks must ensure
anonymization of data and robust
5. Toll Charging Policies: Target protection mechanisms against
Audience Another key consideration misuse, following national standards
is whether to charge only commercial on data privacy.
vehicles or all vehicles, including
private ones. Globally, some countries, 10. Phased or Big-Bang Implementation:
like Germany, only charge heavy A phased approach, piloting the
commercial vehicles based on their system in union territories (UTs) before
higher road wear. However, charging scaling it to states, ensures smoother
private vehicles as well could boost adoption. Lessons learned from
revenue and incentivize efficient smaller-scale implementations can
highway use. A phased approach, guide more efficient rollouts across
starting with commercial vehicles, larger states.
could ease adoption.

6. Value-Added Services (VAS) The toll

2.2 Technology
system can provide several value- Considerations
added services that improve user
experience and safety. These include GNSS-Based Tolling Approach
vehicle tracking, theft protection,
insurance integrations, and real- GNSS-based tolling relies on satellite
time traffic alerts. Such services can navigation to track a vehicle’s location,
be integrated into the OBU system, allowing tolls to be calculated based
providing additional value to users. on distance travelled. This system is
particularly well-suited for long-distance
7. Satellite Tracking Solution highways and expressways, where a
Governance Decisions on whether distance-based tolling model is ideal. The
the satellite tracking system (both implementation of GNSS for barrierless
hardware and software) should be tolling offers significant advantages,
managed by a single player, or multiple including:
vendors need careful policy framing. A
single vendor simplifies management • Dynamic Tolling: GNSS-based tolling
but can risk monopolies, while multiple provides the flexibility to implement
vendors increase competition but add dynamic pricing, where tolls can vary
complexity in coordination. depending on the time of day, traffic
congestion, or vehicle type. This is
8. Compliances with AIS Standards Any beneficial for managing peak-hour
new system must comply with Indian traffic and improving road usage
standards, such as AIS 146 for vehicle efficiency.
location tracking, ensuring security and
quality across the ecosystem. Such • Seamless Travel: GNSS technology
compliance fosters interoperability, enables toll collection without the need
enhances security, and ensures data for physical toll booths or barriers,
protection. reducing congestion at toll plazas. It
allows vehicles to pass through toll
9. Addressing Data Privacy Concerns points without stopping, enhancing
The GNSS-based system will rely overall traffic flow and minimizing
delays.

32 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 • Integration with FASTag: GNSS can system can also integrate with FASTag,
be integrated with the existing FASTag where the system can cross-check
system. Since FASTag is already linked the FASTag for payment verification
to the vehicle’s registration details, once the license plate is read. This
it can be used to authenticate the integration enhances the existing
vehicle’s location, ensuring that toll infrastructure and ensures a smooth
payments are accurately processed. transition to barrierless tolling for users
The integration can make use of the who already possess a FASTag.
existing infrastructure and user base,
avoiding the need for widespread • Multi-Functionality: In addition to
changes in the toll payment process. toll collection, ANPR systems can
support other functionalities such as
However, there are challenges with GNSS- traffic law enforcement, congestion
based tolling, particularly in terms of management, and vehicle tracking.
vehicle hardware requirements. Vehicles This multi-purpose utility makes
would need GNSS-enabled devices to ANPR systems an attractive option
communicate with the system, which for urban road networks that require
might create an adoption barrier for older comprehensive monitoring.
vehicles or for users who do not want to
equip their cars with additional devices. However, camera-based tolling has its
Moreover, GNSS requires reliable satellite own set of challenges. ANPR systems
connectivity, which may face issues in depend heavily on high-quality imaging
remote or densely built-up areas with to ensure accurate recognition, which can
poor signal reception. be impacted by environmental conditions
such as poor lighting, weather conditions,
and dirty or obstructed license plates.
Additionally, camera-based systems are
Camera-Based Tolling Using more suited for fixed-point tolling rather
ANPR than dynamic, distance-based tolling,
limiting their scalability in highways or
Camera-based tolling relies on Automatic long-distance roads where GNSS may be
Number Plate Recognition (ANPR) a better fit.
technology to identify vehicles and
calculate toll charges based on entry and
exit points. This approach is ideal for urban
and peri-urban areas, where fixed tolling Fit For Purpose Approach
points are more common. Key benefits of
The transition to barrierless tolling in
the ANPR-based system include:
India presents a unique opportunity to
• Non-requirement for Vehicle modernize the toll collection system,
Hardware: Unlike GNSS, ANPR does not improve traffic flow, and reduce
require vehicles to be equipped with operational inefficiencies. This requires
any special devices. The tolling system a robust and adaptable technological
can capture license plates using framework that incorporates the best
high-definition cameras installed at of existing infrastructure and emerging
strategic locations, making it an easier solutions. In this context, a “fit-for-
solution for widespread adoption purpose” approach needs to be adopted,
without the need for extensive particularly when evaluating the use
hardware investments from road of Global Navigation Satellite System
users. (GNSS)-based tolling and camera-based
tolling using Automatic Number Plate
• Integration with FASTag: The camera Recognition (ANPR) technology. Both
solutions must be examined in conjunction

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 33

with the existing FASTag system, which is states, regions, and types of roads
already a key component of India’s tolling (expressways, highways, rural roads).
ecosystem.
• Future Expansion: The system should
When implementing an integrated tolling be flexible enough to expand as traffic
system involving GNSS, ANPR, and FASTag, volumes increase, with the capability
several technological factors need to to integrate new toll points and
be carefully considered to ensure the vehicles seamlessly.
solution’s effectiveness and sustainability.
Below is an in-depth look at each of these Scalability demands robust cloud
considerations. infrastructure, high-speed data
processing, and real-time analytics to
handle vast amounts of data generated
by vehicles at toll points. Additionally,
ensuring that the system can handle both
urban and rural areas means developing
infrastructure that caters to diverse
conditions and needs.

Interoperability
Interoperability between the three
technologies (GNSS, ANPR, and FASTag) is
essential for smooth operation across the
tolling ecosystem. It refers to the ability
of different systems and components
to work together seamlessly, regardless
of the technology or toll operator. This
includes:

• Device and System Standardization:

Scalability A unified communication protocol
and system design must be adopted
Scalability is one of the key challenges in
across all toll operators, road operators,
implementing a tolling system in India,
and vehicle owners. Standardizing
given the vast and rapidly growing road
hardware (e.g., GNSS devices, ANPR
network. The system must be able to
cameras) and software platforms
handle
ensures that vehicles can pass through
• Large Traffic Volumes: The road toll plazas without issues, even if they
network in India spans urban and rural are using different technologies (GNSS,
areas with varying traffic densities. A ANPR, or FASTag).
tolling system must handle millions
• Payment Systems Integration: While
of vehicles without performance
FASTag is based on RFID technology,
degradation.
GNSS uses satellite data and ANPR
• Multiple Toll Points: A hybrid system captures plate images. These systems
involving GNSS, ANPR, and FASTag need to integrate with centralized
must be designed to support a large payment systems that allow for
number of toll points across different seamless toll payment and validation
across multiple toll plazas. This ensures

34 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 that a vehicle can use any technology, system since the system uses the
regardless of the toll point, and still radio signals it needs line of site for
receive the correct toll charge. high accuracy. Especially in urban
areas the accuracy can be affected
• Cross-Region Functionality: In India, by high building covering the road.
different states may have different toll
operators with varying systems and • GAGAN is an SBAS that supports flight
standards. The system must be able navigation over Indian airspace. The
to interoperate across regions without system is based on three geostationary
requiring users to re-register or modify satellites, 15 reference stations installed
their tolling accounts. throughout India, three uplink stations
and two control centres. This system
Interoperability challenges also include can be used to improve the accuracy
the need for real-time data exchange of the GNSS system.
between toll operators, enforcement
agencies, and road authorities to ensure • ANPR Camera Performance:
accurate tracking and enforcement of Automatic Number Plate Recognition
tolls. A common standard, as set by the (ANPR) relies on high-resolution
government or a regulatory body, will be cameras and advanced image
crucial for ensuring that all systems work processing algorithms to read vehicle
together. license plates. These cameras must
be able to operate effectively in
various lighting conditions (e.g.,
bright sunlight, night-time driving)
Environmental Resilience and extreme weather (e.g., rain, fog,
snow). Weatherproof cameras with
Tolling systems need to function effectively
night vision, infrared capabilities,
under varying environmental conditions.
and automatic exposure control can
India’s diverse weather conditions—
ensure high performance in diverse
from extreme heat in the desert regions
conditions.
to heavy rains and fog in coastal and
mountainous areas—pose significant • Hardware Durability: The equipment
challenges to the reliability of technology. used at tolling points, including GNSS
Specific considerations include: devices, ANPR cameras, and toll
collection hardware, must be built
• GNSS Resilience: GNSS (Global
to withstand outdoor elements. This
Navigation Satellite System) works by
includes ensuring that devices are
receiving satellite signals to determine
weatherproof, dustproof, and capable
a vehicle’s location. However, satellite
of operating in high temperatures or
signals can be disrupted by weather
humidity.
conditions like heavy rain, fog, or
forested areas, leading to inaccuracies The system must be designed with durable
in location tracking. To mitigate and weather-resistant infrastructure that
this, using L-band signals (which guarantees continuous and accurate
are less susceptible to interference tolling even under adverse environmental
compared to other bands) is one conditions.
solution. Additionally, ensuring
redundancy (such as using multiple
satellite systems) can help improve
GNSS accuracy. Also Geostationary
Navigation Overlay Services to
enhance the accuracy of the GNSS

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 35

Cost to test the system in specific regions
before full deployment.
The implementation of an integrated
tolling system requires significant initial Data Management and Security
investment in infrastructure, technology,
and maintenance. Here are the major Since the integrated system relies on
cost-related considerations: collecting and processing large amounts
of sensitive data—such as vehicle
• Initial Investment: Setting up a location, travel time, registration details,
nationwide tolling system with and toll payments—data management
GNSS, ANPR, and FASTag will involve and security are crucial:
significant capital costs. This includes
the installation of GNSS tracking • Data Privacy: GNSS and ANPR
systems, ANPR cameras, RFID technologies will collect information
infrastructure, and cloud-based data related to vehicle movements
processing systems. The integration and registration numbers, which
of multiple technologies also requires are considered personal data. It is
specialized software development, essential to ensure compliance with
which increases initial development data privacy regulations (e.g., GDPR
costs. or local Indian privacy laws). Users
must be informed about how their
• Ongoing Maintenance and Upgrades: data will be used, stored, and shared.
As with any technological system, Consent from vehicle owners should
maintenance is essential to ensure that be obtained, and data should be
the tolling infrastructure continues to anonymized or encrypted to prevent
operate smoothly. Maintenance costs unauthorized access.
can include regular software updates,
hardware servicing, and ensuring • Real-Time Data Processing: A robust
system upgrades to accommodate data infrastructure is necessary to
technological advances (e.g., process real-time data from GNSS,
updating ANPR algorithms for new ANPR, and FASTag systems. This
plate designs). infrastructure needs to be secure, with
the ability to handle large volumes
• Cost Efficiency: While the upfront of data efficiently and with minimal
costs might be high, the long-term latency. Data storage should be
benefits of implementing this system designed to store large amounts of
(such as reduced congestion, fewer vehicle-related data securely.
toll booths, and more accurate
revenue collection) could lead to cost • Cybersecurity: Given the integration
savings and improved efficiency for of multiple technologies, cybersecurity
toll operators. The system can reduce is a critical factor to protect the
the need for manual toll collection, system from threats, such as data
minimizing labour costs, and reducing breaches, cyberattacks, or fraudulent
the wear and tear on infrastructure. activities. Security measures must
Moreover, it enables dynamic pricing, be implemented at every level, from
which can optimize revenue based on network security to encrypted data
traffic patterns and congestion. storage, to safeguard the system and
user data.
To balance these costs, governments
and toll operators may need to seek
partnerships or investments from
technology providers, and potentially
introduce phased or pilot implementations

36 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 Key Industry
Takeaways

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 37

 4. Key Industry Takeaways

As India moves toward a barrierless 3. Track and Trace for Nominees During
tolling system, the road ahead must Disaster Situations: In the case of
be meticulously planned to ensure natural disasters or accidents, the
smooth implementation, scalability, and system can provide real-time location
sustainability. The goal is not only to address tracking, allowing emergency services
current challenges but also to future-proof to reach the location quickly and track
the system against increasing vehicular missing individuals.
density, technological advancements,
and growing user expectations. This 4. Other Services: Potential integration
section outlines the strategy, key aspects with EV charging stations, parking
of inclusiveness, monetization, and value- management systems, and route
added services that will be critical to the optimization tools can further enhance
success of this transformation. the utility of the system for both
commercial and private users.
4.1 Unique Selling
4.2 Strategy for
Proposition (USP) -
Inclusiveness
Value-Added Services
Offering- To ensure the success of the barrierless
tolling system, it must be inclusive and
The GNSS-based tolling system presents cater to all types of users-commercial
a unique opportunity to offer value- fleet operators, private vehicle owners,
added services (VAS) that can enhance and public transport services:
the experience of users, going beyond
mere toll collection: 1. Product-Based Approach: The tolling
system must be designed as a scalable
1. AIS 140 Compliance and ADAS product that can be expanded as new
Support: Vehicles equipped with AIS vehicles join the system. An ecosystem
140 compliant tracking devices can that accommodates different types
integrate Advanced Driver Assistance of vehicles, including two-wheelers,
Systems (ADAS) to improve road safety cars, trucks, and buses, ensures
and optimize travel routes. This will be inclusiveness.
especially beneficial for commercial
fleets. 2. Economies of Scale: By embracing a
national rollout, the system can benefit
2. Vehicle Theft and Accident Insurance: from economies of scale, reducing the
With real-time tracking of vehicles cost of deployment and operation. A
through the GNSS system, insurance large user base will also help to recover
providers can offer tailored solutions the initial investment more quickly.
that monitor vehicle movements
and alert authorities in case of theft 3. Phased Rollout: Initially, the system
or accidents. Such services can be can target commercial vehicles, which
integrated seamlessly with the tolling contribute significantly to road usage
system, providing an added layer of and wear. Once the system proves
security to road users. successful, it can be expanded to
private vehicles.

38 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 4.3 Contract Execution 4.4 Sustainability
Strategy and Considerations
Monetization The shift to a barrierless tolling system will
contribute to India’s sustainability goals:
A robust contract execution strategy
will be essential to the rollout of the new 1. Reduced Emissions: By eliminating
tolling system: the need for vehicles to stop at toll
plazas, the system will reduce fuel
1. Outsourcing to Toll Service Providers:
consumption and lower carbon
The role of Toll Service Providers
emissions.
(TSPs) will be critical in executing the
project. These providers will manage 2. Smart Traffic Management: With
toll collection, enforcement, and VAS
real-time traffic data, authorities
delivery. Outsourcing this to TSPs with
proven capabilities in technology
can better manage congestion,
and operations will ensure seamless leading to more efficient travel and
execution. reduced overall environmental
impact.
2. Monetization of the System: The new
tolling system can be monetized
through several channels:

• Commercial Vehicles: Initially,

tolls can be charged based on
kilometres travelled by commercial
vehicles. This will provide a reliable
revenue stream.

• Value-Added Services: Offering

additional services like fleet
management, route optimization,
and real-time tracking can provide
additional revenue.

• Subscriptions for VAS: Fleet

operators and private users can
subscribe to services like theft
protection, route optimization, and
insurance, generating recurring
revenue.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 39

5. Annexure
5.1 Annexure A: Voice of Market (VoM)

“India is now taking its latest leap forward with GNSS-based tolling. This
revolutionary, barrierless tolling system powered by satellite technology
will transform the way we experience our [Link] eliminating toll
plaza congestion and enabling fair, distance-based tolling, this system
promotes environmental sustainability and enhances commuter
convenience.”

Shri Davinder Singh Sandhu

Co-Founder & Chairperson of Primus Partners Private Limited

“Kapsch is challenging the limits of mobility for creating a healthy world

without congestion by creating innovative transportation solutions like
GNSS tolling for sustainable mobility to enable users to arrive at their
destination conveniently, on time, safely, efficiently, and with minimal
environmental impact.”

Shri George Kapsch

Chairman and Global CEO, Kapsch Group

“Telematics is revolutionising India’s transportation sector, with the

commercial telematics market projected to grow from ₹14.55 billion in
2023 to ₹61.52 billion by 2032, exhibiting a CAGR of 16.8%.”

Shri Alexander Bondarenko

DG, Telematika

40 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 “Coexisting RFID and GNSS tolling in India offers an efficient blend of
cost-effective simplicity and scalable flexibility, ensuring convenient toll
collection. With Skytoll’s ‘Make in India’ commitment, innovation drives
economic growth and enhanced commuter experience.”

Shri Peter Polakovic

Chief Strategy and Business Development Officer, Skytoll Private Limited

“This approach paper outlines a transformative roadmap for India’s

logistics, where GNSS tolling will enable barrierless toll collection through
satellite tracking. By eliminating toll booths and streamlining routes, this
will reshape the future of transportation, enhance safety and efficiency,
and create a seamless, future-ready logistics network.”

Shri Akhilesh Srivastava

President, ITS India Forum

“NavIC, India’s satellite navigation system, offers superior accuracy

and reliability for GNSS-based tolling. Its dual-frequency approach
and optimised architecture make it ideal for strategic applications.
Successful adoption requires addressing integration challenges, phased
implementation, value-added services, policy mandates, industry
collaborations, and data privacy concerns.”

Shri Rajeev Gambhir

Deputy Director General, SatCom Industry Association (SIA-India)

“28 April 2023 - NETC FASTag system reached an all-time high of ₹193.15
crore, with 1.16 crore transactions in a single day,”

Shri Sandeep Pawar

MD & CEO, KENT Intelligent Transportation Systems (India) Private Limited

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 41

 “The implementation of GNSS-based tolling demands robust legal
safeguards that ensure user privacy and compliance with India’s new
privacy law. Aspects such as informed consent, data minimization and
purpose limitation should be factored in by all players involved, as these
are likely to help in faster adoption and fostering pulic trust in such
innovations.”

Shri Aman Gera

Partner, AZB Partners

“FASTag to SATag” – India, world’s largest road network to embrace GNSS

based Barrierless Toll Collection, with the 2 new ‘service-excellence’
mantras viz. 1) “time-to-serve” and 2) “ease-of-use” to create 1.4+ billion
USD market by 2032…”

Arun Moral
Manag Director, Primus Partners

“GNSS tolling data can empower insurers to offer pay-as-you-drive

policies, track driving patterns, and detect anomalies. This enhances
underwriting precision, reduces fraud, and enables tailored insurance
plans, benefiting both customers and insurers with accurate premiums
and proactive claims support.”

Shri Rajiv Gupta

President, PB Fintech Ltd. (Policy Bazaar and Paisa Bazaar)

“Barrierless tolling marks a transformative step toward efficiency,

transparency, and sustainability for India’s roads. By modernizing tolling
infrastructure, optimizing revenue collection, and reducing congestion,
it enhances road user experience while paving the way for world-class
infrastructure. A seamless transition requires collaboration, robust
data security, and a transparent regulatory framework to unlock its full
potential and deliver lasting benefits to all stakeholders.”

Col Rajeev Sood (Retd)

Secretary General, Highway Operators Association (India)

42 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 “It is heartening to see Industry, Academia, and various think tanks aligning
with IHMCL in our shared commitment to advancing the Government’s
vision of enhancing logistical efficiency through state-of-the-art tolling
technologies. As a step towards this vision, IHMCL has already initiated
the process by inviting bids for implementing barrierless tolling using
existing RFID and ANPR technologies at selected toll plazas. This initiative
not only marks a significant milestone in modernizing India’s tolling
Vishal Chauhan ecosystem but also underscores our dedication to creating seamless
IHMCL and efficient transit experiences across the nation’s highways.”

“At Visa, we are excited about Government of India and Ministry of Road
Transport and Highways’ initiative to launch the Global Navigation
Satellite System (GNSS) based toll collection in India. This will not
only accelerate the digitization of toll payments but also drive greater
efficiency, transparency and better allocation of resources. We look
forward to contributing to this initiative with our global transit experience
and payment solutions, to enable a seamless experience for customers
on highways.”

Rahul Choube
Head of Urban Mobility-India & South Asia, VISA

“India’s highways are transforming into smart corridors of progress—

where innovation drives seamless, sustainable travel and opportunities
abound. The GNSS-based tolling system powered homegrown
technology, marks a monumental shift towards smarter, greener mobility,
unlocking boundless opportunities for every commuter and every corner
of our nation.”

Vaibhav Dange
Public Policy Expert on Infrastructure, Green Fuels & Sustainable Mobility, Think Infra

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 43

5.2 Annexure B: Select Envisaged Gazette notifications

The proposed Gazette notifications for the implementation of GNSS-based tolling in India

[Link]. Requirement Change Responsible

On-Board Unit In case the OBU AIS-140 is not

AIS-140 shall be installed, a penalty shall be
1. compulsory for generated MoRTH
all Commercial
Vehicles

One dedicated Along with FASTag, another ETC

‘Free Flow Lane’ lane shall be introduced at each
shall be given for Toll Plaza for GNSS Toll System
2. MoRTH
Satellite Tolling
System Equipment
for Enforcement

AIS-140 • Additional Controller shall be

Requirements for added for GPS/NavIC module
3. Hardware and MoRTH
Software System • To enable the tolling, the Device
shall be amended Firmware shall be updated

New Gazette Notification shall be

issued to forbid for the system
users to enter a National Highway
Forbid to drive a
without a positive (above the
vehicle without a
threshold) amount on the System
positive (above the
4. Wallet. The user shall pay a double MoRTH
threshold) amount
amount of the stretch cost at each
on the System
toll plaza which will be generated
Wallet
by the Satellite Tolling System as
E-Challan and immediately send
to the Parivahan

44 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 5.3 Annexure C : Reference Standards and Compliance

5.3.1 Typical Functional GNSS OBU Specifications

1. The on-board Unit must ensure:
a. automatic collection, generation, storage and transmission of data on the
movement of a vehicle;
b. transmission of monitoring information about the state (status) of the OBU;
c. changing control parameters and executing commands transmitted from the
Central software system;
d. updating software during operation;
e. unambiguous identification of the on-board device in the system by their
identification (serial) number.
2. The on-board device must provide round-the-clock operation.
3. The on-board device must perform the following functions:
a. generation of information about the current coordinates and direction vector
of movement of the vehicle in which the device is installed, by receiving and
processing signals from GLONASS/GPS + NAVIC satellite navigation systems;
b. registration of internal events related to the on-board device operation, including
the passage of checkpoints;
c. registration of facts of violation of the integrity of the casing (blocks) of the on-
board device and execution of the sequence of actions adopted in the system;
d. accumulation and storage of information in the internal non-volatile memory
about the movement of the vehicle for at least 30 days;
e. periodic transmission of information via channels of mobile radiotelephone
networks of GSM-900/GSM-1800/UMTS standards;
f. conducting self-diagnostics.
4. Operating temperature range from -40 to +80 C.
5. The on-board device must register and record into the internal non-volatile memory
information about the location of the vehicle in which it is installed, based on the event
and/or time.
6. The execution of the software update procedure must not disrupt the normal
operation of the on-board device in any of the modes; in particular, the device must
not interrupt the collection, processing, storage and sending of data to the system,
as well as the execution of system commands, with the exception of the period of
rebooting (switching) the software.
7. The navigation receiver shall ensure that the first navigation launch is achieved within:
a. no more than 40 seconds - for a cold start;
b. no more than 10 seconds - for a hot start.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 45

8. The frequency of output of navigation f. ensure protection of the device
data by the navigation receiver must from reverse polarity of the
be not less than 1 Hz. external supply voltage and ensure
the operability of the device after
9. The on-board device must: exposure to a supply voltage of
a. ensure the operation of the device reverse polarity of 50 V for at least
in all modes, as well as charging of 5 minutes;
the on-board device battery; g. provide protection against
b. ensure the operability of the on- conducted interference in power
board device when the on-board supply circuits.
network voltage changes from 9 to 10. The on-board device battery must
50 V; be designed for at least 1000 charge
c. ensure the operation of the on- cycles.
board device in full functionality 11. Visual indicators of on-board device
when the external power supply is must provide mandatory information
disconnected and the maximum to the driver about:
power consumption from the built-
in battery is at least 30 minutes; a. the inability of the on-board device
to collect, process or transmit data
d. switch the device to energy on the movement of the vehicle;
saving mode 5 minutes after
disconnecting from the on-board b. changing the current state of
power supply when the vehicle is the on-board device (mode/
not moving; submode);
e. switch the device to power from the c. occurrence or detection of
built-in battery when the on-board malfunctions of the on-board
network voltage drops below 9 V; device and (or) its modules.

46 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 12. Resources of the sound warning system of the on-board device must ensure mandatory
notification of the driver about a decrease in the battery charge to a level at which the
device will operate for less than 30 minutes in maximum energy consumption mode.
13. Restoring the operation of the on-board device after a failure must be carried out
without losing the accumulated information.
14. The degree of housing shells protection of the on-board device from penetration of
foreign bodies and water must be no worse than IP44.

5.3.2 Typical Vehicle-to-Everything (V2X) Requirements

The GNSS solution can be complemented with V2X functionality. In this case the following
International standards may be leveraged and cross-referenced

• ISO TC 204/WG 5:2022 (Fee and toll collection)

• ISO DTS 21719-3:2021 (Electronic fee collection — Personalization of on-board equipment

(OBE))

• CEN TC 278/WG1 (Electronic Toll Collection and Access Control. Radio Signal
Interference);

• BS EN 15509:2007 (Road transport and traffic telematics - Electronic fee collection -

Interoperability application profile);

• EN 301 489-3:2005 (EMC standard for radio equipment and services;

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 47

5.4 Seven Steps to Barrierless Toll Plaza Implementation

1 Choosing roads - Choose and

agree toll road stretches

2
Creating a digital road map – create digital toll
road vector graph of chosen road stretches

Rolling out enforcement infrastructure - install stationery

3 and rollout mobile enforcement, system adjustment

Customer care - prepare customer points

4 of services and OBU delivery

Informing toll road users - launch public awareness campaign

5 to inform and learn road users for 1-3 months before new
System will replace old one on chosen road stretches

Starting System - after 1 month start new system

6
(at first stage it should be longer - about 3
months) – stop toll plazas, open boom barriers
on chosen road stretches

7 Removing Toll Plazas - dismantling Toll Plazas,

the vacated land is used for other purposes

48 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 5.5 Annexure D: Case Studies

5.5.1 Case Study #1: Unified Tolling Across Europe: Implementation of

the European Electronic Toll Service by Kapsch
Problem Statement:

The European tolling landscape lacked uniformity, with different countries using varied
toll systems, creating operational inefficiencies and hindering cross-border travel. This
fragmentation resulted in administrative hurdles, incompatible devices, and challenges
in ensuring smooth mobility and optimal revenue collection.

Solution Implemented:

• Integrated Tolling Framework: A cohesive legal and technical framework was

established to harmonize toll operations across European regions.

• Single Tolling Device: A universal device simplified tolling for users, reducing the
need for multiple contracts.

• Streamlined Operations: Administrative processes were centralized, enabling

Toll Service Providers to manage collections efficiently.

• Dynamic Pricing Models: The system incorporated distance- and time-based

tolling, allowing for adaptive and equitable charges.

Benefits:

• Revenue Growth: Centralized processes improved toll revenue management for

operators.

• Simplified User Experience: Travelers enjoyed cross-border mobility with fewer

logistical constraints.

• Operational Streamlining: Unified systems minimized complexities for users and

providers.

• Economic & Environmental Boost: Efficient transport mechanisms fostered

regional commerce and sustainability.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 49

5.5.2 Case Study #2: Bulgarian GNSS-Based Electronic Toll Collection
System by Kapsch
Problem Statement:

Bulgaria’s existing tolling framework lacked the scalability and efficiency required to
handle increasing transit traffic and support infrastructure development. The reliance
on traditional tolling methods led to operational inefficiencies, revenue leakages, and
delays, creating a pressing need for a modernized system.

Solution Implemented:

• GNSS-Based Toll Charging: Introduced a technologically advanced tolling system

using GNSS technology to ensure free-flow tolling without physical barriers.

• Multi-Channel Payment Options: Enabled users to purchase electronic vignettes

through self-service terminals, mobile applications, and online platforms, ensuring
accessibility and convenience.

• Route Cards and GPS Trackers: Provided alternative tolling options for heavy
vehicles, including route-specific prepaid cards and GPS trackers integrated with
National Service Providers.

• User-Friendly Features: Integrated functionalities such as notifications for

expiring vignettes, correction of input errors, and real-time monitoring via web-
based services.

• Enhanced Monitoring and Enforcement: Deployed stationary and mobile control

points to ensure compliance and monitor tolling system effectiveness.

Benefits:

• Revenue Growth: Generated over 3.2 billion BGN in toll revenues between
2019 and 2024, supporting the maintenance of existing roads and the
development of new infrastructure.

• Efficient Road Usage: Streamlined toll collection processes improved traffic

flow, reduced vehicle emissions, and saved users valuable time.

• Scalable and Interoperable Design: Ensured compatibility with tolling

systems in other European countries, facilitating seamless cross-border
travel.

• Enhanced Safety and Compliance: Introduced features like average

speed control and enforcement of technical inspections, improving road
safety and regulatory compliance.

• Data Utilization: Leveraged tolling data for broader applications, including

crime prevention, revenue tracking, and enhancing public service efficiency.

50 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 5.5.3 Case Study #3: Redefining Tolling in India with SkyToll’s Smart
Solutions
Problem Statement:

India’s toll plazas were plagued by congestion, inefficiencies, and safety risks. Physical
barriers led to delays, pollution, and increased operational costs, necessitating a
modernized and eco-friendly tolling approach.

Solution Implemented:

• Barrier-Free Tolling Mechanism: AI-driven video technology enabled toll

payments without vehicle stops, improving traffic flow.

• Integrated Traffic Management: Advanced analytics provided real-time insights

to optimize road use and enforce regulations.

• Data-Driven Enhancements: Insights from traffic data informed strategic

infrastructure upgrades and policy decisions.

Benefits:

• Traffic Decongestion: Removing barriers reduced wait times and improved

vehicular movement.

• Safety Assurance: Advanced monitoring minimized accidents and promoted

safer driving practices.

• Environmental Gains: Reduced emissions aligned with national sustainability

goals.

• Infrastructure Optimization: Data utilization facilitated informed urban

planning and investment.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 51

5.5.4 Case Study #4: Tolling redefined in India with NETC FASTag by
IHMCL
Problem Statement:

India’s manual toll collection systems faced significant challenges, including long vehicle
queues, revenue leakage, and increased pollution due to idling at toll plazas. These
inefficiencies hindered the development of a seamless and transparent toll collection
ecosystem, which was essential to support India’s expanding road infrastructure.

Solution Implemented:

• Introduction of NETC FASTag: Collaborated with the National Payments

Corporation of India (NPCI) to develop an interoperable RFID-based tolling
solution, enabling automatic toll deductions via linked bank accounts or prepaid
wallets.

• Deployment Across National and State Highways: Integrated NETC FASTag

across 1,228 toll plazas nationwide, including 339 state toll plazas, ensuring broad
adoption.

• Centralized Clearing House: Established a unified platform to process toll

transactions in real time, enhancing operational transparency and efficiency.

• Promotion and Policy Support: Made NETC FASTag mandatory for all four-wheeled
vehicles through government regulations, ensuring widespread adoption and
compliance.

• Ecosystem Expansion: Extended NETC FASTag to additional use cases, including

parking payments and vehicle tracking, fostering a comprehensive digital
ecosystem.

Benefits:

• Operational Efficiency: Reduced average wait times at toll plazas from 8 minutes
to 47 seconds, significantly decreasing fuel consumption and vehicle emissions.

• Economic Impact: Increased toll revenues from ₹3,352 crore in FY18 to ₹54,144
crore in FY23, contributing to infrastructure development and maintenance.

• User Convenience: Enhanced travel experiences with seamless, cashless toll

payments, complemented by features like automatic top-ups and monthly
passes.

• Environmental Sustainability: Achieved fuel savings equivalent to ₹2,800 crore

annually and reduced CO2 emissions by 9,78,200 tonnes through minimized idling.

• Digital Transformation: Fostered digitization in associated domains,

including parking and logistics, driving India’s transition to a cashless
economy.

52 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 5.5.5 Case Study #5: Implementation of GNSS-Based Tolling System in
India by Telematika
Problem Statement:

India’s FASTag-based tolling system, while an improvement over manual methods, faced
challenges such as congestion at toll plazas, unfair toll calculation for partial highway
use, and high operational costs. With the rapid expansion of highways and increasing
vehicle count, there was a pressing need for a more advanced, scalable, and efficient
tolling solution.

Solution Implemented:

• GNSS-Based Tolling Technology: Deployed a system leveraging India’s NavIC

satellite navigation and international GNSS constellations (e.g., GPS, Galileo) to
enable distance-based tolling.

• Onboard Units (OBUs): Introduced secure and cost-efficient devices to calculate

tolls based on the distance travelled, with options for smartphone-based
implementations to maximize accessibility.

• Geofencing Technology: Ensured accurate tolling by activating OBUs only within

toll-able highway zones, eliminating charges for adjacent service road users.

• Data Privacy and Security: Enforced stringent encryption protocols and ensured
data usage strictly for tolling purposes, addressing concerns about user privacy.

• Pilot Project on Delhi-Mumbai Corridor: Successfully demonstrated the system’s

feasibility with reduced transit times, fair tolling practices, and improved citizen
satisfaction.

Benefits:

• Efficiency and Convenience: Eliminated toll plazas and physical barriers, reducing
vehicle idling, transit times, and fuel consumption.

• Fair Tolling Practices: Implemented distance-based tolling, ensuring users pay

only for the exact road usage, as opposed to flat rates for entire stretches.

• Environmental Impact: Reduced CO2 emissions through minimized congestion

and idling, aligning with India’s sustainability goals.

• Cost Savings for NHAI: Reduced the total cost of operation to 10-12% of collections
compared to 15-17% with FASTag.

• Scalability and Future Readiness: Designed a flexible system capable of

integrating additional services with extended utility to parking management, EV
charging stations, and other highway services.

• Integration with Value-Added Services: Enabled functionalities like vehicle

tracking, pay-as-you-drive insurance, and roadside assistance.

• Ease of Transition: Offered innovative incentives like discounts for early

adoption and backward integration with existing RFID systems for seamless
user migration.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 53

5.5.6 Case Study #6: Implementation of Toll Lane Booster in GNSS and
FASTag Toll Lanes in India by KENT
Problem Statement:

India’s toll plazas have long grappled with inefficiencies stemming from outdated
processes. In FASTag lanes, barriers opening and closing result in long wait times, leading
to traffic congestion, air pollution from idling vehicles, and frustration among users. In GNSS
lanes, inaccuracies in vehicle detection disrupt payment collection and enforcement of
penalties. These challenges compromise toll plaza efficiency, hinder smooth traffic flow,
and undermine customer satisfaction.

Solution Implemented:

• Early Detection System: Installed TL_Booster devices 25 meters before the

payment axis to detect vehicles using RFID readers and Weigh-In-Motion (WIM)
sensors.

• Queue Management: Created virtual queues for validated vehicles in GNSS and
FASTag lanes. Non-compliant vehicles in GNSS lanes were issued penalties, while
invalid FASTag vehicles were stopped for payment collection.

• Barrierless Tolling: Enabled seamless tolling for validated FASTag users by

removing barriers in 100% FASTag environments.

• Phased Rollout:

◊ Phase 1: Focused on commercial vehicles to address immediate operational

needs.

◊ Phase 2: Targeted private vehicles with campaigns promoting GNSS adoption

and free issuance of onboard units (OBUs).

Benefits:

• Reduced Transaction Time: Valid FASTag and GNSS users experience near-
instant toll processing without stoppages.

• Minimized Traffic Congestion: Efficient queue management ensures smoother

traffic flow.

• Environmental Sustainability: Lower emissions due to reduced vehicle idling at

toll plazas.

• Enhanced User Satisfaction: Barrierless tolling offers a streamlined and hassle-

free experience for commuters.

• Optimized Revenue Collection: Improved compliance minimizes revenue

leakage and ensures accurate tolling.

54 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

 5.5.7 Case Study #7: International Electronic Tolling Collection (ETC)
Case Studies
Canadian ETC system uses RFID-equipped transponders attached to vehicles
that engage with infrastructure to automatically deduct toll fees from prepaid
accounts. The system aims for interoperability among provinces, allowing unified
tolling accounts to enhance users’ ease and seamless travel. Users manage ETC
accounts online via dedicated websites/apps, for tasks like fund additions and
reconciliation. Dynamic pricing adjusts toll rates based on live traffic, during peak
hours to optimize traffic flow.

Malaysia’s ETC system is known as “Touch ‘n Go” (TNG) which supports a free-
flow tolling system. RFID technology is used for the toll collection process. Vehicles
are equipped with RFID tags/stickers on vehicles. User’s pre-load credit into the
RFID tags or link their tags to credit or debit cards for automatic top-ups.

Germany’s ETC system is called “Toll Collect” which is primarily used for tolling of
heavy goods vehicles (HGV’s) on federal highways in Germany. The tolling system
works on features and criteria like Distance-Based Tolling, On-Board Units (OBU),
and Toll Road Networks, and is interoperable and integrated with neighbouring
nations tolling systems, like Austria and Belgium which allows seamless travel and
toll payment across borders.

Australia’s e-TAG is used for building a free-flow toll collection system based on
RFID-based transponders and Dedicated Short Range Communications (DSRC)
protocol. It is interoperable and comprises of sensor & DSRC module used to gather
user data at toll booths to detect the e-TAG, calculate the toll amount, and deduct
it from the prepaid account. If the system does not detect the vehicle, License
Number Plate Recognition is used to check registrations against the government
database.

Singapore launched its Electronic Road Pricing (ERP) in 1998 which was based
on both smart cards and RFID-based methods. The readers for the free flow are
located along the side of the road and the user and vehicle data is read by making
use of the smart card or the OBU. Every time the vehicle crosses the toll, money
gets deducted based on the type/categorization of the vehicle. The smart card
and OBU can be linked to prepaid accounts and users’ bank accounts as well.

Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure 55

5.6 Acknowledgements

We extend our heartfelt appreciation to all those who contributed to the successful
development of this approach paper. Our sincere gratitude goes to all the contributors
who shared their invaluable insights, which were crucial in strengthening the foundation
of this work.

Furthermore, we acknowledge the significant contributions of key individuals whose

expertise and support were pivotal in shaping the direction and outcomes of this approach
paper. Your dedication and efforts have been instrumental in advancing this initiative,
and we are deeply grateful for your unwavering commitment.

Primus Partners Think infra

Davinder Sandhu Vaibhav Dange

Arun Moral Charu Gupta

Archana Trivedi Abhijeet Godbole

Mayuri Dutta

Vikram Vijayakumar

Sathish R

Ipsita Gauba

56 Barrierless Tolling in India – Towards Efficient, Sustainable & Innovative Infrastructure

Support Partner