India's highway travel is becoming increasingly seamless due to a series of toll reforms implemented in recent years. These reforms, spearheaded by the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI), leverage technology and user-centric policies to reduce congestion, lower costs, and enhance travel experience.
FASTag and Electronic Toll Collection
A key component of these reforms is the implementation of Electronic Toll Collection (ETC) systems, primarily based on FASTag technology. FASTag utilizes Radio Frequency Identification (RFID) to automatically deduct toll charges from a prepaid tag affixed to the vehicle's windshield as it passes through ETC lanes. This eliminates the need for vehicles to stop at toll booths, significantly reducing traffic congestion and waiting times. The transition to FASTag has been substantial; over 95% of toll payments on national highways are now made through FASTag. The government made FASTags compulsory for all vehicles in February 2021.
The benefits of FASTag extend beyond convenience. By reducing idling at toll plazas, it improves fuel efficiency and lowers vehicle emissions, contributing to environmental conservation. Furthermore, the automated system reduces the risk of cash leakage and fraud, ensuring better toll revenue management.
Annual FASTag Pass
In 2025, MoRTH introduced the FASTag Annual Pass, offering users predictable toll expenses and stress-free commutes. This scheme allows users to pay a fixed amount of ₹3,000 for either 200 toll trips or one full year of validity across 1,159 toll plazas nationwide. This has significantly reduced daily toll costs for commuters and brought predictability to monthly expenses.
Encouraging Digital Payments
MoRTH has also refined its policies to encourage digital payments at toll plazas. While a double toll charge was previously imposed for non-FASTag users, the penalty for UPI-based toll payments was reduced to 1.25x in 2025, making it a more affordable alternative to cash.
Multi-Lane Free Flow (MLFF) Tolling
Looking ahead, MoRTH and NHAI are implementing Multi-Lane Free Flow (MLFF) tolling systems. India's first barrier-free MLFF tolling system is scheduled to become operational at the Choryasi Fee Plaza on NH-48 in Gujarat in 2026, with five more MLFF projects already awarded. MLFF systems will utilize Automatic Number Plate Recognition (ANPR) technology, satellite tracking, and FASTag integration to automatically identify vehicles and deduct toll charges, allowing vehicles to pass through toll points at speeds of up to 80 km per hour without stopping. The goal is to bring waiting time down to zero minutes, further easing congestion, curbing toll leakage, reducing fuel consumption, and improving travel efficiency.
To ensure compliance with the new MLFF system, the road transport ministry has notified that failure to pay toll will result in the denial of a No Objection Certificate (NOC) for vehicle-related services such as renewal of registration and insurance.
Fair Charges During Highway Construction
To ensure fairness and accountability, MoRTH mandates that users pay only 50% of the original toll on highways undergoing construction until the work is completed.
Challenges and the Way Forward
Despite these advancements, challenges remain. Technical glitches, inconsistent implementation across state highways, and network dependency can lead to delays or failed transactions. However, the ongoing reforms and the proactive approach of MoRTH and NHAI indicate a commitment to overcoming these hurdles and creating a smoother, more efficient highway travel experience for all.
