India to Scrap FASTag from May 1, Shifts to GPS-Based Toll Collection

Starting May 1, 2025, India is set to roll out a major update in the way tolls are collected on national highways. The government will officially replace the FASTag system with a GPS-based toll collection method powered by the Global Navigation Satellite System (GNSS).

This move marks a big step toward smoother, smarter, and more efficient road travel across the country.

What Is GNSS and How Does It Work?

The Global Navigation Satellite System uses satellites to track vehicles in real-time. Instead of stopping at physical toll booths, vehicles will now pass through virtual toll points. GNSS will automatically calculate the distance a vehicle has traveled and deduct the toll directly from the driver’s bank account.

Here’s how it works:

  • A satellite tracks your vehicle using GPS.
  • It calculates the exact distance you’ve driven on a toll road.
  • The toll amount is charged based on that distance.
  • The payment is made automatically—no stops, no scanning, no delay.

Why the Shift from FASTag?

FASTag helped reduce congestion at toll plazas, but it still required physical infrastructure. With GNSS, that’s no longer necessary.

According to Union Minister Nitin Gadkari, the aim is to make toll collection completely seamless and virtual. In his words, “With GNSS, there will be no toll plazas. Just drive, and the toll will be taken care of automatically.”

He also mentioned that a new toll policy will be announced within 15 days to support this major transition.

Benefits for Drivers

GNSS isn’t just a fancy upgrade. It’s packed with practical benefits:

  • No waiting at toll booths
  • Pay-as-you-drive model—only pay for the distance you travel
  • Direct deduction from your bank account
  • Multiple payment methods will be supported
  • More transparency and fewer disputes about overcharging

This system is especially useful for commercial drivers, who spend long hours on highways and often lose time at toll stops.

A Slight Delay, but Now Ready to Launch

The GNSS system was originally supposed to go live on April 1, but due to technical and policy delays, the launch date was pushed to May 1, 2025.

Now, with testing complete and policies in the pipeline, the country is ready for a toll revolution.

India’s move from FASTag to GNSS shows a clear commitment to modernizing its transport infrastructure. By using satellite technology, the government hopes to save travelers’ time, cut fuel waste, and make road travel more efficient.

If you’re someone who hits the highway often, this is a change you’ll definitely feel—less time in queues and more time on the move.


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