India’s electronic toll collection system has experienced noteworthy growth, with reports to Parliament indicating that as of June 2026, there are 6.23 crore active FASTag users across the nation. The Ministry of Road Transport and Highways presented this information in a written response to the Lok Sabha on July 30, highlighting the government’s ongoing efforts to modernise toll collection on national highways.

In conjunction with this growth, the Centre is progressing in the expansion of barrier-less tolling systems, which are intended to enhance the efficiency and smoothness of highway travel. This modernisation effort is aimed at reducing delays and congestion at toll points, thereby facilitating faster journeys for motorists.

Annual Pass Scheme Sees Robust Adoption

The FASTag Annual Pass scheme, introduced on August 15, 2025, for non-commercial vehicles such as cars, jeeps, and vans, has gained considerable traction among users. As of June 2026, more than 77 lakh annual passes have been issued, which have facilitated nearly 63 crore toll transactions. This indicates that approximately 33 per cent of all electronic toll transactions for these types of vehicles are now accounted for by annual pass holders.

The annual pass, priced at Rs 3,075, aims to provide frequent travellers with a more convenient and cost-effective method of toll payment. By streamlining the process, the scheme seeks to enhance user experience on the highways.

In addition to facilitating a smoother toll payment process, the scheme is also contributing to an increase in overall electronic toll collection, aligning with the government’s goal of promoting digitisation within the transport sector.

Implementation of Multi-Lane Free Flow Tolling

To further enhance highway travel, the government is deploying Multi-Lane Free Flow (MLFF) tolling technology. This innovative system allows vehicles to pass through toll points without stopping, utilising a combination of FASTag (RFID technology) and Automatic Number Plate Recognition (ANPR) cameras, along with artificial intelligence to automatically identify vehicles and deduct toll fees.

According to the ministry, the implementation of MLFF technology is expected to alleviate congestion at toll plazas, leading to savings in fuel consumption and improvements in road safety. By eliminating the need for vehicles to stop or slow down, the technology aims to shorten overall travel time.

Currently, 17 toll plazas have been approved for the application of MLFF technology, with five already operational. Additionally, plans are in place to roll out this system at 104 more toll plazas in the future, extending the reach of barrier-less tolling across the highway network.

No Decision Made on Satellite-Based Tolling

The government has stated that there has been no final decision regarding the potential implementation of satellite-based GNSS tolling. An expert committee is currently analysing the proposal and has suggested that further discussions are needed before any nationwide implementation can be considered.

The focus remains on the phased expansion of the MLFF system using FASTag and ANPR technology, as officials work towards enhancing the efficacy of toll collection mechanisms. This step-by-step approach aims to ensure a comprehensive understanding of all operational implications before introducing new systems.

Furthermore, the Centre reiterated that the National Highways Fee Rules of 2008 dictate a minimum distance of 60 kilometres between two toll plazas in the same direction. Exceptions may be made under specific circumstances, pending approval of the competent authority.

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