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Home FINANCE Toll Collection Rule: Indian Govt approves satellite based toll system, to be...

Toll Collection Rule: Indian Govt approves satellite based toll system, to be implemented from this month

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Satellite Based Toll Collection: The on-board unit for the satellite-based toll collection system will first be installed in trucks, buses and vehicles carrying dangerous goods. Other types of commercial vehicles will be included in the next phase.

The Government of India has approved the satellite based toll system. After the new toll system is fully implemented, you will not need to stop at the toll plaza and pay the toll, rather the toll will be paid automatically when you come in the range of the satellite. Preparations are underway to introduce some vehicles with on-board unit (OBU) next week for testing the new toll system. The on-board unit (OBD) unit will work like a tracker device that will send your vehicle’s signal to the satellite. After the implementation of the new toll system, the existing RFID based FASTag system will be completely abolished.

The main feature of the new toll system is that the help of satellite or a group of satellites will be taken to monitor the movement of vehicles. The toll or user fee will be fixed based on the exact distance of the journey.

The Ministry of Road Transport and Highways has amended the NH fee rules earlier this week to allow toll collection using satellite based toll collection system. According to the information, Indian satellite NavIC will be used to implement the new toll system. Currently, some vehicles will be run with on-board units for testing the new toll system, but let us know how long you will have to install it in your vehicle.

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Tracking devices will be pre-installed in vehicles.

For the satellite-based toll system to work, it will be mandatory to install on-board units in vehicles. In the coming few years, new vehicles will start coming with pre-fitted on-board units. On-board units can be installed from outside in existing vehicles. On-board units will be issued like fastag and its work will be handed over to the issuing authority.

On-board units will be installed in trucks first

The on-board units for the satellite-based toll collection system will first be installed in trucks, buses and vehicles carrying dangerous goods. Other types of commercial vehicles will be included in the next phase. However, private vehicles will be included in the new toll system under the final phase in 2026-27.

Toll collection with the new system will start from 2025

The satellite-based toll system will be implemented on 2,000 km of national highways by June 2025. It is targeted to increase it to 10,000 km in nine months, 25,000 km in 15 months and 50,000 km in two years. For this, the highway-owning agencies of the central government have completed geo-fencing of almost the entire length of national highways. Geo-fencing is important to mark accurate entry and exit points for the purpose of toll calculation. The total length of national highways in India is about 1.4 lakh km, out of which toll is collected on about 45,000 km.

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