Digital tolling has transformed user-fee collection on National Highways. Critically assess the achievements and remaining gaps.

Digital tolling on National Highways (NH) began with the order that every NH fee-plaza lane become a FASTag lane by 1 December 2019 [1]. More than 98% of vehicles now use FASTag [2]. Paying toll is now mostly automatic and paperless. However, gaps remain in how fees are collected, in funding, and in plans for the next tolling system.

Achievements

• Near-universal adoption: Each direction keeps only one hybrid lane that also takes cash [1]. NHAI planned to stop cash payments from 1 April 2026, leaving FASTag and UPI [2].
• Rules that push digital payment: Vehicles without a valid FASTag pay 2x the fee in cash but only 1.25x through UPI [2]. A tag not fixed on the windshield attracts double toll [3].
• New user products: The FASTag Annual Pass passed 1 crore passes by September 2026. It is bought through the Rajmargyatra app and works at about 1,150 plazas [4].
• Next-generation systems: Multi-Lane Free Flow (MLFF) tolling at Chorayasi on NH-48 charges moving vehicles using ANPR cameras and FASTag, with no barrier [5]. GNSS (satellite) tolling will charge by distance actually travelled [6].

Remaining gaps

• Wrong charges and leakage: A CAG audit found Rs 6.54 crore collected in excess on NH-32 because a required 75% fee cut was not applied [7]. NHAI debarred 14 agencies for irregular fee collection [8].
• Enforcement without barriers: Under MLFF, vehicles that fail to pay get e-notices and pay double after 72 hours [5]. The system only works if these dues are actually recovered.
• Funding risk: The revenue given up through the Annual Pass is not published [4]. Meanwhile, NHAI's debt is still Rs 2.4 lakh crore and the private share of road building fell from 51% to about 15% [9]. Loans and investment backed by toll income need predictable toll revenue.
• Design mismatch: The pass counts plaza crossings [4], but GNSS will have no physical plazas [6].
• Split between Centre and states: The pass does not work on state highways [4].

Overall, digital tolling has made paying toll faster and more transparent, but auditing and fiscal planning have not kept pace. The next steps are: include pass trip counts in CAG audits, publish the revenue given up, and redesign the pass for GNSS. Along with Centre–state compatibility, these steps would make highway user fees fair and financially sustainable, in line with SDG 9 (resilient infrastructure).