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.
