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Nitin Gadkari: India to Roll Out New Toll System Soon; Rates Likely to Drop
India's road toll system is set for a revamp with reduced charges and a tech upgrade, says Road Minister Nitin Gadkari.

By Indrani Priyadarshini

on April 9, 2025

Nitin Gadkari, Minister of Road Transport and Highways, Government of India, has announced that the government will soon roll out a new toll collection mechanism, which is expected to lower the toll charges for commuters across the country. The initiative is aimed at bringing more efficiency and transparency to toll operations while reducing the financial burden on daily road users. 

Existing FASTag System May Be Phased Out

Speaking at an industry event organised by FICCI, Gadkari mentioned that while the FASTag system has streamlined toll payments to a great extent, the government is now preparing to transition to a more advanced tolling technology. The upcoming system is likely to use satellite-based GPS tracking and number plate recognition to charge vehicles based on the distance travelled on tolled roads, rather than flat charges.

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Technology-Driven & Distance-Based Charging

According to Gadkari, the proposed system will utilise technology that calculates tolls based on the actual distance covered on national highways. “The pilot for this new technology has already begun,” he stated. While he didn’t specify an exact launch date, the minister assured that implementation will begin soon after the pilot phase is completed and thoroughly reviewed.

Lower Tolls & Better Transparency Expected

According to Gadkari, one of the key benefits of this new system is a significant reduction in toll charges. This move is expected to be well-received by transporters and daily commuters who currently pay fixed tolls regardless of their distance travelled. The new approach not only promotes fairness but also ensures that users pay in proportion to their road usage. 

 

India's Road Infrastructure 

The government has been actively pushing to modernise India's infrastructure, and this upcoming shift in tolling mechanism is a part of that broader vision. Gadkari emphasised that technological upgrades in road transportation, including this initiative, are central to improving logistics, reducing costs, and boosting economic growth.