India will soon see a major change in toll collection from May 1, 2025. The Ministry of Road Transport and Highways has stated that the FASTag system will be phased out gradually and replaced by a GPS-based toll collection system through the Global Navigation Satellite System (GNSS).

Union Minister for Road Transport and Highways Nitin Gadkari confirmed that a new toll policy will be introduced within 15 days. The policy aims to make highway travel smoother and more transparent for commuters.

What is the New GPS-Based Toll Collection System?

The upcoming GNSS system leverages satellite technology to track the movement of vehicles. Instead of stopping at toll booths, vehicles’ locations will be monitored via GPS. Toll charges will then be calculated based on the distance traveled and automatically deducted from the linked bank accounts, eliminating the need for vehicles to halt at physical toll plazas.

How GNSS Differs from FASTag

Although it supported electronic transactions on toll plazas, it also meant cars would slow or stop for scanner checking, typically leading to jams. Nevertheless, the GNSS technology applies virtual toll booths, making the trip convenient. The payments will be entirely based on how much distance has been covered on tolled highways, making it even more equitable and transparent.

Delay and New Rollout Date

Initially scheduled for April 1, 2025, the GNSS launch faced postponement due to technical and administrative hurdles. The government now plans to implement it nationwide from May 1, 2025.

What Current FASTag Users Need to Do

• Continue using FASTag until April 30, 2025.
• Post-April, install a government-approved GPS device in vehicles.
• Link the GPS system to a registered bank account for automatic toll payments.
• Once the GPS system is fully operational, users can remove the FASTag sticker from their vehicles.

Advantages of the New System

• No Stopping at Toll Booths: Toll payments will be deducted automatically while in motion.
• Distance-Based Charges: Pay only for the distance traveled.
• Reduced Fuel Consumption: No idling at toll plazas means lower fuel use.
• Enhanced Road Safety: Smoother traffic flow with minimal stopping.
• Transparent Billing: Every deduction will be clearly linked to the exact distance traveled.

Awareness Drive in the Pipeline

The government will roll out a nationwide campaign to inform car owners about the GPS installation procedure and advantages of the new system. The goal is to make the transition smooth without any disruption to commuters’ experience.

This marks one of the most transformative changes in India’s highway infrastructure, promising faster travel, reduced pollution, and a seamless commuting experience for millions across the country.

Also Read: New FASTag Rules: Essential Updates for Smooth Highway Travel