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Priti Burud

Published on 09:45 PM, 11 Jun 2025 3 min

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New Toll Policy in India will Indicate Charge by “Kilometer” using FASTag Soon.

The Indian government is moving ahead with creating a seamless toll collection with a new toll policy that charges users based on the exact kilometers travelled. The new toll policy will use both FASTag and new camera technology to improve transparency, reduce delays, and improve convenience to users travelling on all national highways and expressways.

According to sources familiar with the work of the new policy, the government would like to take advantage of the existing FASTag technology and high definition camera recording technology to take the toll where users are charged a toll based on kilometers travelled, rather than a flat rate or fixed rate as is seen now as common in all toll transaction.

How the New System Works

As part of this policy, each vehicle using the national highways and expressways will be tracked through Automatic Number Plate Recognition (ANPR) cameras at the toll plazas or travel junctions. The cameras will capture the number plate of the vehicle, as well as the entry point and exit point, and calculate the distance traveled.

Rather than waiting in line at the toll plaza and either paying using cash or an RFID sensor (and someone processing that cash or clicking the sensor and moving on), if a vehicle has already got a FASTag associated with a bank account, the toll charges will be deducted for the distance the vehicle traveled via the toll.

The need for a toll booth and human engagement will be phased out, and will potentially create an easier experience all around.

Advantages to Commuters

A primary goal of this kilometer-based tolling policy is to alleviate congestion and allow for value travel for users on the national highways and expressways. The use of the new system begins to address the predominant complaints associated with unfair toll charges, where tolls were greater for short-distance toll-users as well as lost time delays with long lines at booths of each toll company.

As noted, this change will create better compliance/revenue collection, reduce fuel waste, offer more transparency to everyday travelers, and improve the urban commuting experience.

Policy Launch Timeline and Expectations

While an actual implementation date has not yet been revealed, the processes to implement such a tech-driven system are said to be gearing up for the final stages. Once implemented, it will be an important milestone in the upgrading of India's road infrastructure and toll collection system.

The kilometer-based tolling policy is in sync with the wider move to digitize and automate processes designed to give India's highway users smoother, fairer, and faster transit.Also Read:

  1. Citroen Celebrates 4 Years in India with Massive Offers up to ₹2.80 Lakh

  2. Volkswagen Golf GTI Lands in India: First Batch Reaches Dealerships

  3. Mahindra’s SUV Lineup for 2025: Four Big Launches to Watch

Priti Burud

Content Writer

As a passionate content writer, Priti specializes in covering the latest trends in the automotive industry. Priti avidly explores the mobility sector, staying updated on technological advancements. Her enthusiasm for cars drives me to research extensively, brainstorm ideas, and craft engaging content that showcases the latest developments worldwide. Whether it's unveiling cutting-edge technology or analyzing industry shifts, she is dedicated to providing informative and insightful content for automotive enthusiasts and tech aficionados alike.

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New Toll Policy In India Will Indicate Charge By Kilometer Using Fastag Soon

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