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Tuesday, May 30, 2023

FASTags Soon End Across India! Satellite-Based Toll Based On Distance Covered Under Testing

To make way for the new toll collection system, the government is scrapping the FASTag system.

Pilot Testing

It will instead collect toll tax using the satellite navigation system. It is reportedly already testing this as a pilot project.

1.37 lakh vehicles have been covered across the country in the pilot project.

The New System

In this system, the toll is assessed according to the distance travelled by the vehicle, The toll amount to be paid is directly proportional to the distance travelled.

Currently, the whole distance from one toll to another is collected from the vehicles. No matter where the journey ends, the toll has to be paid, even if the journey does not end there but somewhere in the middle.

Emulating German System

European countries have used this method with success, and the hope is that the same will happen in India. In Germany, most vehicles (98.8 percent) are equipped with satellite navigation systems. The tax calculation begins as soon as the vehicle enters the toll road. Tolls are deducted from the account when the vehicle moves from a highway to a road without tolls.

Policy Change 

Prior to implementing the new system, India needs to change its transport policy. Experts from Russia and South Korea are currently preparing a study report. It may be released in the next few weeks.

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