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Gadkari’s tolling plan could unlock Rs 25,000 cr

By Sohail Khan 14 September 2026, 10:06 pm

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Business News›Industry›Transportation›Roadways›Nitin Gadkari says by 2027 all national highway toll plazas will go barrier-free: How new tolling system could boost govt revenue by up to Rs 25,000 crore a year

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Nitin Gadkari says by 2027 all national highway toll plazas will go barrier-free: How new tolling system could boost govt revenue by up to Rs 25,000 crore a year
Synopsis

By March 2027, national highways are expected to become barrier-free with the wider implementation of FASTag and automatic number plate recognition (ANPR) technology. The system is projected to deliver annual benefits of Rs 20,000-25,000 crore to the government. Increased FASTag adoption has already boosted toll collections by around Rs 7,000 crore, while motorists are expected to benefit from shorter waiting times and lower fuel consumption.

FASTag barrier-free tolling: Gadkari says 100% rollout by March 2027, government could gain Rs 25,000 crore — FASTag barrier-free tolling

Travelling on national highways could soon become smoother as the government moves towards making toll plazas barrier-free with FASTag and automatic number plate recognition (ANPR). Union Road Transport and Highways Minister Nitin Gadkari has said the system is expected to be fully implemented across national highways by March 2027.

Gadkari said the wider use of electronic toll collection could generate significant savings and benefits for the government while reducing waiting times for motorists.

Read more – If your car breaks down on a highway, help could reach you faster: How NHAI is upgrading its helpline to quickly dispatch ambulances, cranes & patrol vehicles

Barrier-free tolling by March 2027: What Gadkari said

Speaking at the Global Fintech Fest 2026, Gadkari said the government plans to make all toll booths on national highways barrier-free.

"When the system will go fully live, then our department alone would deliver a benefit of Rs 20,000-25,000 crore per year to the Government of India because of the use of FASTags," Gadkari said.

More than 70% of toll booths are expected to become barrier-free by the end of December this year, with the coverage targeted to reach 100% by March next year, according to the minister.

FASTag toll collection: Rs 7,000 crore increase already

Gadkari said FASTag adoption has already helped increase toll collections by around 10%, equivalent to approximately Rs 7,000 crore. Total toll revenue has crossed Rs 82,000 crore, he said.

FASTag penetration at National Highway toll plazas has crossed 98%, while around 13 crore FASTags have been issued across the country.

The minister said FASTag demonstrates how digital technology can improve the efficiency of physical infrastructure and make toll collection more seamless.

How barrier-free tolling will work

The government is combining FASTag with ANPR technology to move towards multi-lane free-flow (MLFF) tolling.

MLFF tolling was introduced at a Mumbai toll plaza on May 11, 2026, as part of the broader transition towards barrier-free toll collection.

Instead of vehicles stopping at conventional toll barriers, the technology is designed to identify vehicles and facilitate electronic toll collection as they pass through the tolling zone.

FASTag to reduce waiting time and fuel consumption

Gadkari said technology-driven toll collection has already delivered economic and environmental benefits by reducing waiting times, fuel consumption and revenue leakage.

He said vehicles earlier spent around 12 minutes waiting at toll plazas and stressed the need to further reduce stoppage times through digital systems.

The barrier-free tolling system being piloted is expected to generate an additional 10% increase in toll collections, translating into around Rs 7,000-8,000 crore, Gadkari said.

He also said operating costs at toll booths had fallen sharply, from around 12% earlier to 2-3%.

FASTag could save motorists Rs 5,250 crore in fuel costs

Motorists could also benefit from shorter queues and reduced chances of being stuck at toll plazas.

Gadkari cited studies estimating annual fuel savings of more than Rs 5,250 crore due to reduced waiting and stoppage times.

The minister said the government was looking to make highway travel more efficient by bringing physical infrastructure, digital payments and data together.

OneTag launched to improve FASTag portability

Gadkari was speaking at the launch of OneTag, a FASTag portability facility introduced in Mumbai.

The facility allows vehicle owners to link their existing FASTag to a new bank account through the Rajmarg Yatra app.

According to Gadkari, the initiative reflects India's focus on interoperability, innovation and customer-oriented digital infrastructure.

He said the growing integration of highways and digital platforms could allow tolling, payments, vehicle data and financial services to work together as part of a more seamless mobility ecosystem.

Gadkari calls for technology to detect overloaded trucks

The minister also urged technology companies and innovators to develop systems capable of detecting overloaded trucks.

He said India's freight sector currently lacks transparency and indicated that efforts would be made to address the issue through technology.

Gadkari also said one of the operators had been booked by the Central Bureau of Investigation.

'The biggest power is interoperability'

Gadkari said the next phase of highway infrastructure would involve deeper integration of mobility-related data across FASTag, vehicles, insurance and banking systems.

"The biggest power is interoperability," he said, while calling for research and recommendations to help shape future infrastructure policies centred on digital systems.

He also highlighted the importance of innovation, entrepreneurship, science, technology and research in converting knowledge into wealth.

According to the minister, India's young innovators and startups have the potential to develop technologies that can meet domestic requirements as well as serve markets globally.

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