The National Highway Authority of India (NHAI) will introduce a Global Navigation Satellite System (GNSS)-based Electronic Toll Collection system in India.

More on the news

  • Indian Highways Management Company Limited (IHMCL), a company promoted by NHAI, has invited Global Expression of Interest (EOI) from innovative and qualified companies to develop and implement a GNSS-based Electronic Toll Collection system in India.
  • NHAI will introduce a GNSS-based Electronic Toll Collection (ETC) system within the existing FASTag ecosystem. It will initially use a hybrid model in which both RFID-based ETC and GNSS-based ETC will operate simultaneously.
  • The EOI aims to identify experienced and capable companies that can deliver a robust, scalable, and efficient Toll Charger Software, which will serve as the backbone for the implementation.

What is GNSS-based Electronic Toll Collection (ETC) system?

  • It is a barrier-free method of Electronic Toll Collection in which road users are charged based on the distance they have travelled on the tolled Highway stretch. 
  • The system uses a Satellite or Constellation of Satellites to track vehicle movement and calculate tolls based on the distance travelled on tolled Highways.
  • The lanes will have advanced readers to identify GNSS vehicles, and additional fees will be charged from non-GNSS vehicles entering GNSS lanes.

National Highways Authority of India (NHAI)

  • It was constituted by an Act of Parliament in 1988 under the administrative control of the Ministry of Road Transport and Highways. But authority became operational in February, 1995.
  • It aims to develop, maintain and manage the National Highways entrusted to it by the Government of India.
  • Headquarters: New Delhi

Indian Highways Management Company Limited (IHMCL)

  • NHAI jointly with its Concessionaires and Financial Institutions incorporated IHMCL in 2012 under the Companies Act, 1956.
  • It was incorporated to carry out Electronic Tolling and other allied works by NHAI jointly with its Concessionaires and Financial Institutions.

The shareholding pattern of stakeholders is 

  • NHAI-41.38%, 
  • Concessionaires-33.81% 
  • Financial Institutions 24.81%.

Headquarters: New Delhi

Significance of GNSS-based Electronic Toll Collection (ETC) system

  • It provides a seamless and barrier-free tolling experience to National Highway.
  • It will enhance toll collection efficiency by reducing leakages and preventing toll evasion.
  • Distance-based tolling, where users will pay only for the stretch they have travelled on a National Highway will be beneficial for the travellers.
  • It aims to eliminate physical toll booths on highways, thus improving travel convenience.

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