2024 · GS Paper 3 · Q6 · 10 marks

What is the technology being employed for electronic toll collection on highways? What are its advantages and limitations? What are the proposed changes that will make this process seamless? Would this transition carry any potential hazards?

In short

Highway tolls are collected through RFID-based FASTag under NPCI's NETC programme, which cuts queues but charges by stretch and needs plazas, and GNSS-based and free-flow tolling are proposed to make it seamless. The shift carries privacy, signal, spoofing and exclusion hazards that need NavIC and DPDP Act safeguards.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
FASTag reached nearly 98 per cent penetration with over 8 crore users by 2025 (PIB), and India is now moving to satellite-based, barrier-free tolling. The shift promises seamless travel but raises privacy and reliability questions.
Present Technology: Advantages and Limits
•

The technology

RFID under NPCI's National Electronic Toll Collection programme; a passive FASTag on the windscreen is read at plazas and the toll debited from a linked account, mandatory since February 2021.

•

Advantages

Shorter queues, less fuel waste and emissions, no cash leakage, transparent revenue data for NHAI, and products like the FASTag Annual Pass (August 2025).

•

Limitations

Read failures from damaged tags, payment for the full stretch rather than distance travelled, and tag misuse that prompted "One Vehicle, One FASTag" (2024).

Proposed Changes and Their Hazards
•

GNSS tolling

Fee Rules amended in 2024 allow distance-based tolling through an on-board unit, piloted on the Bengaluru-Mysuru (NH-275) and Panipat-Hisar (NH-709) stretches.

•

Multi-Lane Free Flow

Number-plate cameras and FASTag readers on gantries let vehicles pass without stopping.

•

Privacy hazard

Continuous location tracking risks surveillance and needs safeguards under the DPDP Act, 2023.

•

Technical and social hazards

Signal loss in tunnels, spoofing, reliance on foreign satellites unless NavIC is used, wrong billing on parallel roads, and digital exclusion.

Conclusion
GNSS and free-flow tolling can make highway travel seamless and fair by distance. A phased hybrid rollout with NavIC, strong data protection and easy grievance redress will secure the gains without the hazards.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: FASTag versus GNSS Tolling. FASTag versus GNSS Tolling. Comparison of FASTag (RFID) and GNSS tolling
Diagram: FASTag versus GNSS Tolling

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