Toll booths to go; GPS-based collection within one year: Centre

Sagar Malik
·2-min read


Toll booths to go; GPS-based collection within one year: Centre
Toll booths to go; GPS-based collection within one year: Centre

18 Mar 2021: Toll booths to go; GPS-based collection within one year: Centre

India will do away with toll collection booths on highways and implement a complete GPS-based toll collection system within one year, Union Road Transport and Highways Minister Nitin Gadkari said on Thursday.

He announced the ambitious plan in the Lok Sabha today while speaking about the Vehicle Scrappage Policy.

Here are more details on this.

Details: 'Within a year, all physical toll booths will be removed'

"I want to assure the House that within one year all physical toll booths in the country will be removed," Gadkari said in the Lower House of the Parliament during the Question Hour.

"It means that toll collection will happen via GPS. The money will be collected based on GPS imaging (on vehicles)," he added.

Details: Instructed police inquiry for vehicles not using FASTag: Gadkari

Gadkari said that 93 percent of the vehicles pay toll using FASTags, but the remaining 7 percent have still not started using them.

The Minister told the House he has instructed police inquiry for such vehicles that do not pay toll using FASTags.

There can be cases of toll theft and GST evasion if FASTags are not fitted in vehicles.

FASTag: FASTag introduced in 2016, now mandatory for all vehicles

FASTag, which facilitates cashless and electronic payment of fees at toll plazas, was introduced in 2016.

Starting February 16, vehicles without the FASTag device are needed to pay double the toll fee at plazas.

Gadkari said new vehicles have FASTags fitted in them while the government has said it will give free FASTags for old vehicles.

Other details: Gadkari also announced the vehicle scrappage policy

Gadkari also announced the vehicle scrappage policy in Lok Sabha today.

In case of failure to get a fitness certificate, commercial vehicles will be de-registered after 15 years while private vehicles will be de-registered after 20 years if found unfit, the Minister stated.

He added that under the new policy, owners of old vehicles will get major incentives to scrap old and unfit vehicles.

Incentives: Some incentives under the new policy

Some of the incentives include 1) Scrap value for the old vehicle given by the scrapping center, which is approximately 4-6% of the ex-showroom price of a new vehicle.

2) Possible road tax rebate up to 25% for personal vehicles and up to 15% for commercial vehicles.

3) A possible discount of 5% on the purchase of a new vehicle against the scrapping certificate.