India is rolling out a groundbreaking satellite-based toll collection system, driven by the Global Navigation Satellite System (GNSS) and onboard units (OBUs) in vehicles.
India’s Satellite-Based Tolling System Set to Change Highway Travel | Image Credit: Creative Touch Imaging Ltd./NurPhoto via Getty Images
Key Highlights
- Tolls will be charged based on the distance vehicles travel, monitored by satellite technology.
- Vehicles will come equipped with GNSS-OBUs for automatic toll payments without stopping.
- GNSS tolling will begin with commercial vehicles and gradually expand to private cars by 2027.
New Delhi: India is embarking on a major transformation in toll collection with the launch of a satellite-based tolling system powered by the Global Navigation Satellite System (GNSS) and onboard units (OBUs) installed in vehicles. This shift promises to reshape highway travel by eliminating the need for physical toll plazas and enabling uninterrupted movement of vehicles. The government’s recent decision to amend the NH Fee Rules sets the stage for GNSS-based toll collection, which is expected to be fully operational across the country within a few years.
At the heart of the new system lies satellite technology, which will track vehicles’ movements and calculate tolls based on the precise distance travelled. This eliminates the need for vehicles to stop at toll barriers, providing a seamless experience for drivers. India’s home-grown satellite navigation system, NavIC, will be integral to the success of this system.
The system operates through a non-transferable GNSS-OBU unit, which will either be factory-installed or retrofitted onto vehicles. Acting as a tracking device, the OBU will relay information to centralised tolling software. This software, known as the ‘toll charger,’ will calculate toll charges based on distance travelled, time on the road, and other key factors. Fintech companies, acting as issuer entities, will manage these OBUs, similar to the issuer banks for FASTag.
Virtual Tolling for Seamless Travel
The GNSS-based toll system introduces the concept of virtual toll booths. Instead of relying on traditional toll plazas, vehicles equipped with GNSS-OBUs will be monitored through virtual gantries placed along the highways. These gantries will act as checkpoints, gathering data such as vehicle registration, type, and bank account details.
As vehicles pass through these virtual toll points, the system will automatically deduct the toll from the user’s account via the existing FASTag payment infrastructure. The toll fee is calculated in real-time, with notifications sent to the driver via SMS whenever a deduction occurs. This not only simplifies the toll payment process but also ensures greater transparency for road users.
Initial Rollout and Phased Expansion
The rollout of GNSS-based tolling will happen in stages, starting with trucks, buses, and vehicles carrying hazardous goods. This initial phase is feasible because these types of vehicles are already equipped with Vehicle Location Tracking (VLT) systems, which do not raise significant privacy concerns. The government aims to bring private vehicles under this system by 2026-27.
The first 2,000 kilometres of national highways will adopt GNSS tolling by June 2025, with plans to extend the system to 10,000 kilometres within nine months and eventually reach 50,000 kilometres by 2027. The total length of tolled highways in India stands at around 45,000 kilometres, out of 1.4 lakh kilometres of national highways.
Geo-fencing has been completed for almost all national highways, marking the entry and exit points crucial for precise toll calculations. The GNSS tolling agency will further geo-reference these highways before launching the system, ensuring smooth implementation.
Integration with Existing Infrastructure
Although GNSS-based tolling is poised to become the future of highway travel, the system will initially coexist with traditional toll plazas. Dedicated GNSS lanes will be introduced at existing toll plazas, allowing vehicles fitted with OBUs to pass through without stopping. Over time, more lanes will transition to this system, gradually phasing out traditional toll booths.
The National Highways Authority of India (NHAI) will invite bids from Indian and global technology companies, with major players such as Tata Consultancy Services (TCS), Infosys, and RailTel expressing interest in developing the necessary infrastructure. The first commercial tolling under this new system is expected to be operational by mid-2025.
A New Era for Highway Travel
The introduction of GNSS-based tolling marks a significant advancement in India’s transport infrastructure. It promises to enhance efficiency and reduce congestion on highways by eliminating the need for physical toll plazas. Moreover, the system offers a fairer method of toll collection, as users will only pay for the distance they travel.
While the initial phase targets commercial vehicles, the eventual inclusion of private cars by 2027 means that all road users will benefit from faster and more convenient travel. For the government, this shift also represents a move towards modernising India’s highway system in line with global standards.
Conclusion
As India prepares to implement this cutting-edge tolling system, drivers can look forward to a smoother and more efficient experience on national highways. GNSS-based toll collection is set to transform the way tolls are paid, offering a more streamlined and user-friendly solution for both commercial and private vehicle owners. With the phased rollout planned over the next few years, this system will pave the way for the future of tolling in India, ushering in an era of seamless, uninterrupted highway travel.
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