India To Replace FASTags With GPS-Based Toll System From May 2025

Road travel across India is poised for a significant transformation with the introduction of a satellite-backed tolling system, replacing the long-standing FASTag model. Set to launch on 1 May 2025, the advanced GPS-based toll collection mechanism aims to reduce congestion, eliminate physical toll barriers, and streamline the highway experience for motorists. According to experts, this marks a major step towards digital infrastructure in the transport sector, with technology playing a central role in improving traffic flow and toll efficiency.

How the New GPS Tolling System Works
The upcoming toll system will function through the Global Navigation Satellite System (GNSS), which uses satellite technology to track vehicle movement in real time. Each vehicle will be fitted with a small on-board unit (OBU), also referred to as a tracker, which communicates with satellites to determine the exact distance travelled on national highways. Based on this data, toll fees will be calculated proportionately and deducted automatically from a digital wallet linked to the vehicle’s account.

Unlike the current RFID-based FASTag, which requires vehicles to slow down or stop at designated toll plazas, the GNSS system offers a completely contactless experience. The new setup supports both prepaid and postpaid payment modes, allowing users to manage their highway charges with greater flexibility.

Why the Shift Away from FASTag Was Necessary
While FASTag brought considerable improvements to toll collection after its introduction in 2016, the system still relied heavily on physical infrastructure. Drivers were often required to queue up, particularly during peak travel periods or holiday weekends, defeating the purpose of seamless movement. In addition, technical issues such as faulty tag scans, duplicate deductions, or mismatched vehicle data have contributed to dissatisfaction among users.

According to transport industry analysts, the GNSS toll model not only addresses these limitations but also aligns with the global push towards virtual tolling systems. Many countries in Europe have already adopted similar satellite-based solutions, and India’s adoption signals a desire to modernise its national highway network with proven international practices.

Rollout Plan and Implementation Timeline
The Ministry of Road Transport and Highways has confirmed that the rollout will begin in phases starting in May 2025. Union officials have stated that pilot testing is already underway and will continue in select corridors before nationwide implementation.

Initially, only commercial vehicles and new passenger cars may be fitted with the GPS tracking hardware, with broader coverage planned over the coming months. Existing FASTag users are likely to be migrated gradually, with provisions being made to upgrade or replace in-vehicle devices. Authorities are expected to set clear guidelines for registration, installation, and digital wallet setup for drivers and fleet owners.

What Motorists Can Expect
One of the most significant benefits for drivers will be the removal of physical toll plazas. With virtual tolling in place, vehicles can maintain consistent speeds on highways, resulting in quicker journey times and reduced fuel consumption. This not only improves travel comfort but also helps cut emissions due to less idling at toll points.

The real-time tracking capabilities of the GNSS model also promise better transparency in toll charges. Drivers will receive detailed reports on their trips, including distance covered, toll deductions, and route summaries. According to experts, this data could further be used by fleet operators and logistics firms to optimise delivery routes and monitor operational efficiency.

Potential Challenges and What Lies Ahead
Despite its many advantages, the system may face initial teething issues. Installation of OBUs, ensuring network coverage across remote areas, and educating users about digital toll management are likely to be focal points in the early months. Data privacy and tracking concerns might also be raised, which the authorities would need to address through strict regulatory guidelines and secure technology frameworks.

Nonetheless, the transition is seen as an inevitable and necessary upgrade. Experts believe the shift to GNSS-based tolling could pave the way for future smart mobility innovations in India, including dynamic pricing based on traffic levels and real-time route diversions to avoid congestion.

With India gearing up for this major change, the move from FASTags to GPS tolling represents more than just a technical switch—it is a leap towards an efficient, digitised highway experience that prioritises both convenience and sustainability.