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AI and RFID Power Barrier-Free Tolls
The new system uses Automatic Number Plate Recognition (ANPR) cameras with AI analytics, combined with RFID-based Electronic Toll Collection (FASTag). Vehicles will be identified and charged automatically through these ANPR cameras and FASTag readers, eliminating the need to stop at toll plazas. This technological upgrade is a key part of Transport Minister Nitin Gadkari's plan to significantly reduce India's logistics costs.
Slashing Logistics Costs for Economic Growth
Gadkari noted that India's logistics cost has fallen to 10 percent of GDP from 16 percent, according to a report by IIT Chennai, IIT Kanpur, and IIM Bangalore. He stressed that further reduction to single digits is key to India becoming a global economic leader. This target would place India closer to the efficiency levels of China (8-10 percent) and the United States and European nations (around 12 percent).
How to Avoid Toll System Penalties
The government plans to send e-notices to drivers who don't comply with the new tolling system. Non-payment could lead to FASTag account suspension and other penalties linked to the VAHAN system, encouraging adherence to the new rules.
Infrastructure Push Fuels Economic Ambitions
Gadkari also mentioned India's dependence on oil imports and the drive for alternative fuels like green hydrogen, highlighting the nation's broader economic strategy. This initiative supports Prime Minister Narendra Modi's goal of making India a USD 5 trillion economy, where efficient infrastructure plays a vital role.