Government Plans Major FASTag System Expansion Beyond Highway Tolls

The road transport and highways ministry is investigating opportunities to broaden FASTag applications to include electric vehicle charging, parking payments, and insurance services. Thus extending its current role beyond national highway toll collection. This initiative aims to establish the next development phase for the electronic toll system whilst improving user experience and promoting digital governance through technological integration.

Road transport minister Nitin Gadkari emphasised the system's broader potential, stating that the FASTag infrastructure possesses significant capabilities beyond toll collection, serving as a platform for comprehensive digital travel experiences nationwide. Through partnerships with fintech companies and various stakeholders, the government seeks to transform FASTag into a comprehensive platform that will improve user convenience, optimise transport and mobility services, and enhance sector efficiency.

(Also Read: NHAI To Compensate Private Highway Operators For “Annual Pass” Rollout)

The national electronic toll collection programme currently operates through 1,728 toll locations, comprising 1,113 national highway points and 615 state highway facilities, accounting for 98.5% of all toll transactions. The country has distributed approximately 110.4 million FASTags through more than 38 banking institutions.

The Indian Highways and Management Company (IHMCL), operating under the National Highways Authority of India's supervision, conducted a collaborative session with financial technology firms on Wednesday to examine innovative FASTag implementations. The workshop focused on gathering expertise from prominent fintech organisations regarding regulatory adherence, complaint resolution mechanisms, security protocols, and non-toll FASTag applications to support system expansion and future development.

(Also Read: Kerala NH-66 Collapse: NHAI Bars Megha Engineering For 1 Year Over Safety Lapses)

Road secretary V Umashankar highlighted the workshop's core purpose as examining toll collection methods and developing cashless, convenient, time-saving, fraud-resistant, and error-free tolling through collaborative efforts. He described the government's vision of fintech companies as innovation providers whilst the administration serves as a facilitator to create solutions that deliver superior experiences for road users.

The expansion strategy represents a significant shift in how digital payment infrastructure can serve multiple transportation-related functions, potentially creating a unified platform for various mobility services across India's road network.