FASTags set the tone for Digital India
ROADS & HIGHWAYS

FASTags set the tone for Digital India

With the introduction of FASTags, the Indian Government has set a strong foot forward with regards to its take on electronic toll collection system which is set to be introduced on all National Highway (NH) tolls.  FASTags are stickers that are placed on the windshields of cars – upon crossing the toll booth and electric payment is initiated. The system is operated by the National Highways Authority of India (NHAI) and is now mandatory for toll payment on NHs.

With the government extending the deadline from December 1 to December 15 to obtain these stickers, they are expected to play a major role in expediting the monetisation of road assets and attract more global investors under the Toll-Operate-Transfer (TOT) model.

As reported, numerous foreign investors had previously shown interest towards India’s highway road assets and have praised the country’s efforts to introduce an electronic tolling system as it ensures a more efficient method of collection. The investment put forward by these sources depends on the reliability of the toll collection system – which makes it crucial for India to necessitate the following change at an optimal speed.

According to reports, it is estimated that one factor that will attract foreign investors is the introduction of digital payment that will be put forth as a consequence of FASTags. They won’t be required to deal in hard cash and are more likely to see this as a benefit of their investment.

The tags initiate payment through RFID (Radio Frequency Identification Technology) which processes the transaction the specific linked account. The sought after benefits of these are: Decongestion of highways resulting in time savings and aids in making the tolling process transparent – free of any discrepancies that may normally arise from handling cash.

At present, the government has started a pilot project at the Hyderabad airport for using FASTags for parking purposes in two phases. Apart from parking, NHAI is also considering launching the system for fuel stations, traffic violations and motor insurance, among other avenues.

The introduction is therefore a major boost to the government’s Digital India initiative and will also expectedly fasten sale of road assets. 

With the introduction of FASTags, the Indian Government has set a strong foot forward with regards to its take on electronic toll collection system which is set to be introduced on all National Highway (NH) tolls.  FASTags are stickers that are placed on the windshields of cars – upon crossing the toll booth and electric payment is initiated. The system is operated by the National Highways Authority of India (NHAI) and is now mandatory for toll payment on NHs. With the government extending the deadline from December 1 to December 15 to obtain these stickers, they are expected to play a major role in expediting the monetisation of road assets and attract more global investors under the Toll-Operate-Transfer (TOT) model.As reported, numerous foreign investors had previously shown interest towards India’s highway road assets and have praised the country’s efforts to introduce an electronic tolling system as it ensures a more efficient method of collection. The investment put forward by these sources depends on the reliability of the toll collection system – which makes it crucial for India to necessitate the following change at an optimal speed.According to reports, it is estimated that one factor that will attract foreign investors is the introduction of digital payment that will be put forth as a consequence of FASTags. They won’t be required to deal in hard cash and are more likely to see this as a benefit of their investment. The tags initiate payment through RFID (Radio Frequency Identification Technology) which processes the transaction the specific linked account. The sought after benefits of these are: Decongestion of highways resulting in time savings and aids in making the tolling process transparent – free of any discrepancies that may normally arise from handling cash. At present, the government has started a pilot project at the Hyderabad airport for using FASTags for parking purposes in two phases. Apart from parking, NHAI is also considering launching the system for fuel stations, traffic violations and motor insurance, among other avenues. The introduction is therefore a major boost to the government’s Digital India initiative and will also expectedly fasten sale of road assets. 

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement