FASTag is a device that absorbs Radio Frequency Identification technology for making toll payments directly while the vehicle is in motion. It is stuck on the windscreen of the vehicle and allows a customer to make the toll payments directly from the account which is connected to FASTag. As the National Highway Authority of India has decided to hike toll tax by almost 15% from April 1 across the country, traveling on National Highways could become more extravagant.
A few days ago, the Centre has announced that it had winded up the existing FASTag system, and the government is planning to implement a new system of toll collection. According to the new system, the drivers have to pay the same toll for the number of kilometers for which their car will travel on the National Highway and Expressway. India has decided to follow the productive FASTag system that is being implemented in the countries like Germany and Russia, as it is profit-making.
From now, the central government is going to collect toll tax from the satellite navigation system. Ahead of this system coming into effect, its pilot project is in progress. In this system, the toll has to be paid depending on the number of kilometers the vehicle travels on the highway.
Process of toll collection through the new system
In Germany, 98.8% of vehicles were installed with satellite navigation systems. Just after the vehicle enters the tolled road, the tax calculation starts. When the vehicle moves from the highway to the road without a toll, the toll of that kilometer is abstracted from the account. The system for deducting tolls is similar to that of FASTag. Currently, the toll is being charged from FASTag on 97% of vehicles in India.
It is essential to alter the transport policy before effectuating the new system. 1.37 lakh vehicles have been covered across the country in the pilot project. The resource persons from Russia and South Korea are formulating a study report which is going to be published in the near future.