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[BUSINESS] · India · 3 sources

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India to implement barrier-free highway tolling by March 2027

Union Road Transport and Highways Minister Nitin Gadkari announced that India is transitioning to a barrier-free Multi-Lane Free Flow (MLFF) electronic toll collection system. The government aims to have 60-70 percent of toll booths operational under this system by December, with full implementation across all national highways expected by March 2027.

The new system utilizes FASTag and Automatic Number Plate Recognition (ANPR) cameras to reduce crossing times to less than 10 seconds. This transition is expected to significantly lower operational and maintenance costs from approximately 12-15 percent down to 2-4 percent. Financially, the full implementation of electronic toll collection could generate between Rs 20,000 and Rs 25,000 crore annually for the government, with the barrier-free system specifically expected to add an additional Rs 7,000 to Rs 10,000 crore in annual revenue.

Additionally, Gadkari launched ‘OneTag’, a portability solution developed by the Indian Highways Management Company Limited (IHMCL). Similar to mobile number portability, ‘OneTag’ allows vehicle owners to switch their issuing bank while retaining their existing FASTag, eliminating the need to purchase and install a new tag.

Entities

Indian Highways Management Company Limited · National Highways Authority of India · Nitin Gadkari