India incurred a loss of ₹12000 crore every year due to prolonged waiting at Toll Plazas. Despite the partial relief provided by FASTag, the system still lacks efficiency. To eliminate this loss, Nitin Gadkari is phasing out Toll Plazas and introducing a new technology.
Here’s everything you need to know:
In our recent poll, 292 people stated that there is no need to collect tolls when a substantial road tax is already being paid. It’s important to understand that tolls are paid for roads built by private companies, such as highways, until the cost of the construction and a profit are recuperated. On the other hand, road tax is specifically designated for roads that the government is responsible for constructing and maintaining.
Even though FASTag has reduced the average waiting time from 8 minutes to 47 seconds, it has not entirely addressed the issue of congestion. Toll Plazas are inherent bottlenecks, and the implementation of FASTag has not resolved this structural problem.
Although there are around 127 million vehicles in India, only 90 million are currently paying tolls. This means that approximately 25% of the vehicles are not contributing to tolls.
You may wonder how this is possible with FASTag? It’s due to the presence of corruption at the grassroots level, as acknowledged by Nitin Gadkari. There are well-connected insiders who understand how to exploit the FASTag system, enabling them to bypass toll payments.
To remedy this, a new satellite-based system will be implemented. This innovative approach will eliminate all Toll Plazas, using GPS technology in place of FASTag and satellite data for toll collection. Although the exact technology has not yet been determined, Nitin Gadkari has assured the use of cutting-edge technology.
This new system will decrease infrastructure and manpower expenses. Even in remote areas, tolls can be collected without substantial investment, making the system scalable. Additionally, it will facilitate smoother economic activities, reducing the detrimental impact of idle trucks waiting in queues.
Furthermore, the necessary number plates for this system have been issued since 2019. New vehicles are already equipped with these number plates, while older vehicles will need to be updated. This system will also result in cost savings for users. For instance, if you traverse a highway with a distance of 60 km between two toll plazas and exit after 30 km, you will only be charged for the distance you have used rather than the entire 60 km.
A similar system operates across Europe, ensuring seamless regulated traffic flow among its countries. As a result, the removal of Toll Plazas can significantly enhance traffic efficiency.
However, concerns have been raised regarding the readiness of India for such technology, particularly with respect to individuals without digital payment systems or smartphones with UPI. Notably, Fastags primarily utilize UPI for automatic deduction, which has achieved a 96% penetration among vehicles crossing tolls. Therefore, the country is well-prepared for this technology, even surpassing the UPI usage in Europe.
Nonetheless, the issue arises when someone fails to set up the appropriate system in their vehicle, allowing them to bypass toll payments. To address this, a new bill is set to be passed.