No Satellite-Based Toll System in India Just Yet – Govt Prioritises Number Plate Recognition

Contrary to several media reports, the Government of India has stated that it does not plan to roll out satellite-based car tracking and toll collection infrastructure in the near future. It will, however, promote barrier-free toll checkpoints using automatic number-plate recognition (ANPR) implemented using cameras. While the satellite-based system has been proposed for nearly a year, it is not close to being rolled out yet. 

As per an official government notice, “This is to clarify that no such decision has been taken by the Ministry of Road Transport and Highways or National Highways Authority of India (NHAI) regarding the nationwide implementation of satellite-based tolling from 1st May 2025. In order to enable seamless, barrier-free movement of vehicles through toll plazas and reduce travel time ‘ANPR-FASTag-based Barrier-Less Tolling System’ will be implemented at selected toll plazas.”

Union Road Transport and Highways Minister Nitin Gadkari had announced in March this year that a comprehensive new toll system would be introduced by early April, aimed at streamlining and speeding up toll collection, while still generating adequate revenue to fund infrastructure development projects. An annual pass was also proposed, potentially saving significant amounts of money for frequent travelers. 

Also Read: Government Considering Monthly Or Yearly Pass For Vehicles Traveling On National Highways: Nitin Gadkari

More recently on April 14, Gadkari remarked at a gathering in Mumbai that the government was set to roll out a new toll policy by May 1, which would massively benefit drivers across the country. The system he described would not require drivers to stop at toll plazas, and would accurately apply toll charges based on distance actually traveled. Money would be automatically debited from a linked bank account. While he did mention satellites as well as cameras recognising license plates, it was not clear exactly when and where such a scheme would be implemented.

Now, the government has clarified that satellites will not replace the FASTag system just yet. Camera-based ANPR will be used to track cars passing through toll plazas, while FASTag will still be used for the transactions. Vehicles that violate rules will receive a challan through the existing VAHAN system. is still set to be trialled, but there is no confirmation about a timeline. 

The government had previously invited Requests for Proposals (RFP) to implement automatic number plate recognition (ANPR) to modernise the FASTag toll system. The barrier-free tolling system was touted for potentially reducing congestion and boosting transparency. At the time, the initial test locations were said to be Gharonda, Choryasi, Nemili, UER-II, and the Dwarka Expressway. Based on the trials, the system could be expanded across India.