Beginning on May 1, 2025, India plans to implement a GPS-based tolling mechanism, revolutionizing its highway toll collection system. By replacing the current FASTag approach, this new system seeks to improve efficiency, lessen traffic, and guarantee commuters receive more accurate toll costs.

The FASTag system, which was introduced in 2016 and uses RFID technology to permit electronic toll payments, significantly reduces wait times at toll plazas. But difficulties like long waits at crowded toll booths, glitches in the system, and tag abuse have necessitated a more advanced approach.

Global Navigation Satellite System (GNSS) technology is used by the forthcoming GPS-based toll collection system to track automobiles and determine toll prices according to the actual distance driven on national roadways. By guaranteeing that drivers only pay for the distance they go, this strategy promotes equity and openness in toll pricing.

Vehicles will be equipped with On-Board Units (OBUs) under the new system, which use GNSS technology to track their movements on roads. As a car travels, the system calculates the toll based on the distance traveled. The relevant amount is then automatically deducted from the driver's bank account or linked digital wallet. This eliminates the need for actual toll booths and allows for seamless and easy travel.

The new tolling system will be implemented under the supervision of the National Highways Authority of India (NHAI). Commercial vehicles like trucks and buses will be the primary focus of the implementation at first, with ambitions to expand the system to private vehicles in later stages.