The full rollout of FASTag-based electronic toll collection could provide the Government of India with annual savings and additional revenue benefits of up to ₹25,000 crore, Union Road Transport and Highways Minister Nitin Gadkari said at the Global Fintech Fest 2026.
Barrier-Free Tolling Planned Across National Highways
The government aims to make all toll plazas on national highways barrier-free by March 2027. Gadkari said the complete implementation of FASTag could generate an estimated ₹20,000 crore to ₹25,000 crore in annual benefits for the government.
FASTag adoption has already helped increase toll collections by around 10%, or approximately ₹7,000 crore, taking total toll plaza revenue beyond ₹82,000 crore, according to the minister.
FASTag and ANPR to Enable Free-Flow Tolling
The next phase of toll collection will combine FASTag with Automatic Number Plate Recognition (ANPR) technology to allow vehicles to pass through toll points without stopping.
Multi-Lane Free Flow (MLFF) tolling was introduced at a Mumbai toll plaza on May 11, 2026, as part of the government’s plan to move towards barrier-free toll collection.
Gadkari said technology-driven tolling has already helped reduce waiting time, fuel consumption and revenue leakage. Vehicles earlier spent around 12 minutes waiting at toll plazas, while the new system is aimed at reducing stoppage time further.
Barrier-Free System Could Add ₹7,000-8,000 Crore
The proposed barrier-free tolling system is expected to generate an additional 10% in revenue, which could translate into another ₹7,000 crore to ₹8,000 crore, Gadkari said.
At the same time, operating costs for toll plazas have fallen significantly. According to the minister, toll collection operating expenses have declined to around 2-3% from nearly 12% earlier.
More than 70% of toll plazas are expected to become barrier-free by the end of December 2026, with complete coverage targeted by March 2027.
Motorists to Benefit From Lower Waiting Time
The shift to digital tolling is also expected to reduce delays for motorists and lower fuel consumption caused by vehicles waiting at toll plazas.
Gadkari cited estimates showing that the system could help save more than ₹5,250 crore worth of fuel every year.
With FASTag penetration at national highway toll plazas crossing 98%, around 13 crore FASTags have already been issued across India, according to the minister.
OneTag Allows FASTag Bank Portability
Gadkari was speaking at the launch of OneTag, a FASTag portability facility introduced in Mumbai.
The service allows vehicle owners to link their existing FASTag to a new bank account through the Rajmarg Yatra app. The initiative is aimed at improving interoperability and making digital tolling more convenient for vehicle owners.
Gadkari said India’s future mobility infrastructure will increasingly depend on intelligent highways, digital platforms and technology-based financing. Integrating physical infrastructure with digital payments and data, he said, can make transport systems more efficient and transparent.
Greater Integration of Mobility Data
The government is also looking at deeper integration between FASTag, vehicle information, insurance and banking systems.
Gadkari highlighted interoperability as an important part of India’s next stage of digital mobility infrastructure, with greater integration expected to connect tolling, payments, vehicle data and financial services.
He also urged technology companies to develop systems capable of detecting overloaded trucks, saying greater transparency is needed in the country’s freight sector.
Focus on Technology and Innovation
Gadkari said digital technology can help modernise physical infrastructure while reducing the cost of operating tolling systems.
He also called on young innovators, startups, entrepreneurs and technology companies to develop solutions that can address India’s infrastructure needs and potentially serve global markets.
The minister stressed the role of innovation, science, technology, research and entrepreneurship in turning technological knowledge into economic value.
