Centre denies satellite toll launch from May 1

New Delhi

The central government has dismissed reports claiming that a satellite-based toll collection system will begin across India on May 1. The Ministry of Road Transport and Highways issued a statement on Friday to clarify that no such decision has been made by either the ministry or the National Highways Authority of India (NHAI).

Some media outlets had suggested that this new system would replace the current FASTag toll process. However, the ministry confirmed that FASTag will continue, and no nationwide switch to satellite tolling is planned at this time.

Instead, selected toll plazas will test an advanced system combining Automatic Number Plate Recognition (ANPR) with the existing FASTag system. This system aims to enable smoother vehicle movement without barriers at toll gates, reducing travel delays.

The new method uses cameras to read number plates and sensors to detect FASTag stickers. Vehicles will be charged without stopping. Violators may receive e-notices, and unpaid tolls can lead to FASTag suspension or penalties through the VAHAN database.

NHAI has invited bids for installing this hybrid tolling system at specific locations. If it performs well and gains public approval, it may be expanded nationwide in the future.

Currently, India has around 855 toll plazas on its national highways—675 funded by the government and the rest operated privately.

Earlier in April, NHAI raised toll fees by 4–5% to adjust for inflation. This annual review links toll prices to the wholesale price index, helping fund road maintenance and development projects across the country.