Barrier-Free Tolling with ANPR-Based System Likely Under New Policy

In a bid to revolutionize toll collection and highway usage, the Government of India is preparing to roll out a next-generation tolling system based on Automatic Number Plate Recognition (ANPR) technology. The move is aligned with the Ministry of Road Transport and Highways’ (MoRTH) broader vision of implementing a new toll policy that charges highway users based on per kilometer (km) usage rather than a fixed toll rate.

Key Changes:

1. Per-Kilometer Tolling: Under the existing regulatory regime, specifically, the National Highways Fee (Determination of Rates and Collection) Rules, 2008, the toll charges are levied on a fixed basis determined by the length of a highway project (typically 60 km), regardless of the actual distance travelled by a vehicle. The proposed toll policy, currently under formulation, seeks to replace this model with a per-kilometer charging framework, wherein users would be billed based on the precise distance traversed on highways and expressways.
2. Barrier-Free Tolling System: Toll collection to be facilitated using a combination of Automatic Number Plate Recognition (ANPR) and FASTag. Vehicles will be charged automatically. There is no need to stop at physical toll plazas.
3. Enforcement Measures: In case of toll evasion, e-notices will be issued. Repeated non-payment may result in FASTag suspension or other penalties.

Impact on Concessionaires and Revenue Sharing: Currently, private entities involved in highway construction and maintenance recover their investments through toll collections under concession agreements. A key feature of the new policy is the proposal to centralize toll revenue collection and distribute it among concessionaires based on vehicle usage data. This will ensure that concessionaires are not financially disadvantaged, even as users are charged based on exact km usage. The government is also looking to curb underreporting of toll revenue, an issue prevalent in the existing system. The enhanced transparency and automated data tracking of the ANPR system aim to minimize such discrepancies.

Addressing Risk and Ensuring Seamless Adoption: While the transition to a barrier-free tolling system offers numerous benefits such as reduced travel time, fuel savings, and improved traffic flow, it also raises questions about risk allocation. If the new model shifts the risk of payment defaults to concessionaires, they must be prepared to bear that burden. There will be no significant adverse impact on existing concession agreements, as the technology promotes smooth toll collection and enhanced revenues. However, if the risk of default payments is passed on to the concessionaires, they must absorb the associated delays until the default is rectified, or contractual protections may be required to mitigate delayed or non-payments.

Pilot Implementation and Road Ahead: The National Highways Authority of India (NHAI) has invited bids for the pilot implementation of the ANPR-FASTag-based tolling system at select toll plazas. The broader rollout will be contingent on the system’s operational success, efficiency, and user acceptance.