- 05 Aug 2022
- ICICIdirect Research
MORTH CONTEMPLATING NEW METHODS OF TOLL COLLECTION
News: The government is working on abolishing toll plazas in the country in the next six months by working on new options like a satellite-based toll system which will debit the toll amount from a passer-by’s bank account through the GPS installed in his/her car. He also described an alternative method of following a computerized system, which will read the number plate of a passer-by’s vehicle for toll collection. The Central Government is working on both these alternatives, and one of these two methods will be finalized in a month.
View: While toll collection through FASTAGs has been profitable for the government with NHAI's daily collection of toll amounts reaching to Rs 120 crore/day, new methods claimed to be more efficient ways of toll collection to reduce congestion at toll plazas. Also, new method claims to improve collection by 5-10% on like to like basis.
Impact: Positive.