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Gadkari’s plan to make India’s toll plazas disappear

By Sohail Khan 11 September 2026, 12:05 pm

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Business News›Industry›Transportation›Roadways›GFF 2026: Nitin Gadkari targets barrier-free tolling by February as FASTag cuts wait times by up to 90%

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GFF 2026: Nitin Gadkari targets barrier-free tolling by February as FASTag cuts wait times by up to 90%
Synopsis

India is progressing towards fully digital and barrier-free tolling systems. A multi-lane free flow system will be operational by February. FASTag has already significantly reduced waiting times and eliminated cash transactions. This technological advancement saves millions of hours and substantial economic resources annually. Environmental benefits are also considerable, akin to planting millions of trees.

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India's EV market to reach Rs 20 lakh cr by 2030, will create 5 cr jobs: Nitin Gadkari — India is progressing towards fully digital and barrier-free tolling systems. A multi-lane free flow system will be operational by February.

Union minister Nitin Gadkari on Friday said India is moving towards fully digital and eventually barrier-free tolling, with a multi-lane free flow (MLFF) system expected to be operational at toll plazas by February as the government seeks to eliminate stoppages, cut fuel consumption and reduce the cost of toll operations.

Speaking at the Global Fintech Fest, Gadkari said FASTag has already transformed toll collection by sharply reducing waiting times and eliminating the need for cash and change at toll plazas. The next step, he said, is to ensure vehicles do not have to stop at toll plazas at all.

Also Read: GFF 2026: Scindia pitches ‘digital trinity’ of connectivity, compute and trust for AI economy

He said waiting times that once stretched to 12 minutes at toll plazas, and in some cases to as much as 30 minutes, have fallen by 80-90% following the adoption of FASTag. The government is now using technology to eliminate the remaining delays.

The reduction in waiting time has translated into significant economic and environmental gains, Gadkari said. Annual time savings from faster tolling are estimated at 71 crore hours, while the economic savings are around Rs 68,500 crore a year.

He compared the environmental benefit to the plantation of around 2.7 crore trees, linking the reduction in idling and fuel consumption to wider sustainability gains.

From FASTag to barrier-free tolling

Gadkari said FASTag represents an important piece of India's digital infrastructure for mobility, but the government is looking to take the system further.

Under MLFF, vehicles will be able to pass through toll points without stopping at physical barriers. Gadkari said the system is expected to be introduced by February and would also help reduce operational and maintenance costs for toll plazas.

Also Read: GFF 2026: India's fintech transformation a result of innovation, inclusion & trust coming together, says RBI's Sanjay Malhotra

The government is also working to make highway payments entirely digital. Gadkari said he expects all banks to participate in FASTag and wants the system to become more transparent.

He also highlighted the shift away from cash-based toll collection. In the past, motorists sometimes received chocolates instead of small amounts of change when paying tolls, he said. With digital payments, that practice has largely disappeared and motorists can make exact payments electronically.

The government has also introduced an annual pass for non-commercial passenger vehicles. Under the current scheme, motorists can pay Rs 3,000 for toll-free travel at 200 toll plazas.

Gadkari said the broader adoption of FASTag could also generate an estimated Rs 20,000-25,000 crore benefit for the government, with the gains coming from digital systems, innovation and research.

Fintech opportunity in tolling

Gadkari said the expansion of digital tolling also creates a significant opportunity for fintech companies, particularly as FASTag, vehicle records, insurance and banking systems become increasingly interconnected.

He identified FASTag, the VAHAN vehicle database, insurance and banking as important components of the wider digital mobility ecosystem, while stressing that technology alone would not be sufficient.

Also Read: GFF 2026: Fintech industry should step up investments to counter risks from emerging tech, says FATF vice-president

For Gadkari, credibility, clarity and goodwill are equally important as technological capability and resources as India builds out its digital infrastructure.

He also called for greater competition in the tolling market, saying more players should enter the space and push service quality higher.

The broader objective, he said, is to build a highway system where digital payments are seamless, vehicles face zero stoppage at toll points and technology delivers both economic and environmental gains.

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