The National Highways Authority of India (NHAI) is planning to introduce a new toll collection system based on the Global Navigation Satellite System (GNSS). This system will eliminate the need for vehicles to stop at toll plazas.
Let’s explore how this new toll collection system works and its potential benefits for India.
What is this New Toll System?
Under this new Global Navigation Satellite System (GNSS), vehicles won’t need to stop at toll plazas. As soon as a vehicle enters and exits the highway, its location will be tracked via satellite. Each vehicle will have an On-Board Unit (OBU) communicating with the satellite to determine the vehicle’s location and deduct the toll amount automatically. This not only saves fuel but also reduces long queues at toll plazas.
Notably, India’s indigenous satellite navigation system GAGAN (GPS Aided GEO Augmented Navigation) is also incorporated into this system.
How will Toll Collection Improve?
The NHAI collects tolls on highways across the country. Currently, NHAI earns approximately Rs 40,000 crore annually from tolls. However, this figure could significantly increase in the coming years, with experts suggesting toll revenues could reach up to Rs 1.40 lakh crore annually within the next 2-3 years after the implementation of this new system.
Challenges with the New Toll System
While India’s GNSS-based highway toll collection system marks a significant step towards modernisation, there are several challenges that need attention:
Collection Issues: What if a user’s digital wallet doesn’t have enough funds or attempts to evade tolls by tampering with their vehicle number plate? Ensuring collection in such scenarios is difficult.
Heavy Investment: Setting up a network of ANPR cameras across the entire country requires substantial infrastructure investment. These cameras are essential for identifying vehicles.
Maintaining Trust: Ensuring data security and user privacy is crucial. GPS technology tracks vehicles, posing a risk of data breaches.
What’s in it for Investors?
This new toll collection system could offer investors several opportunities. Developing and implementing such a system will require the involvement of various companies, including infrastructure firms and those manufacturing ANPR cameras. NHAI has invited bids from global companies to develop this system.
What’s Next?
In India, dealing with long queues at toll plazas is a common issue across highways. The GPS-based toll collection system offers a solution, but implementing such a change in such a vast country won’t be easy. Currently, India boasts one of the world’s largest road networks.
Additionally, with this change, saying goodbye to FASTag may be necessary, and customers may need to pay higher toll taxes.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.
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