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Priti Burud

Published on 02:12 PM, 22 May 2025 3 min

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What is GPS-based Toll Collection System & How it Works?

Learn more about the new use of GPS-based toll collection systems changing the way we travel down India's highways. Understand how it works and its main benefits over traditional toll plazas, and how GPS-based tolling may drive the future of road usage.

GPS Toll System

India's transportation infrastructure is undergoing a sizable change, as GPS-based systems for toll collection are being implemented across the nation to ease toll payments, mitigate congestion, and improve the overall efficiency of road travel.

What is a GPS-Based Toll Collection System?

The GPS toll collection system is based on satellite technology, which determines vehicle travel using GPS (Global Positioning System). This system provides an alternative to traditional toll collection with a physical toll booth or RFID (radio frequency identification) based toll systems. Toll user charges can be based on distance travelled on toll roads without requiring toll users to pay at collection points. Driving on toll roads means no stopping at a toll plaza in India, and active, real-time toll payment deduction whenever a toll vehicle passes precalibrated sections of highway.

India's system will be developed using GNSS (Global Navigation Satellite Systems) technology and monitor vehicle movement using satellites to deduct toll user fees directly from user-linked accounts whilst travelling across designated toll highway sections.

The implementation of futuristic toll collection is an enormous benefit as it will increase efficiencies in travelling on highways, decrease congestion on highway toll plazas and support the Indian Government's aspirations towards seamless digital mobility.

How Does the GPS-Based Toll Collection Work?

In order to gain a clearer understanding of GPS based toll collection how it works, there are a number of steps involved.

  1. Installation of On-Board Units (OBUs): Each vehicle has an On-Board Unit (OBU), which is a small GPS-enabled unit that tracks and communicates the precise location of the vehicle in real-time.

  2. Location Tracking via GNSS: The On-Board Units (OBUs) track and communicate with GNSS toll collection satellites, sending real-time data of the vehicle's movement. The OBU records the vehicle's entry and exit in real-time for all tolled segments.

  3. Mapping of Toll Roads: India has digitally mapped the toll roads in the country. The system knows, in real-time, exactly which segments of the highway or road are tollamic, chargeable by toll.

  4. Calculation of Toll Charges: The OBU will automatically calculate the distance of a vehicle traveling within the toll route, which is recorded once a vehicle has entered a toll zone. The system will capture the vehicle's location and dynamically calculate the distance and that value to the toll as it progresses on its route.

  5. Auto-Deduction of Toll Fees: The calculated toll charge will then automatically deduct the transaction from the user's bank account or e-wallet linked to the OBU. This promotes a contactless and delay-free tolling experience.

  6. Digital Records and Receipts: The user will receive a digital receipt for the transaction post-transaction completion and then also have the ability to track the toll use via a central dashboard or mobile app.

This seamless process illustrates exactly how GPS based toll collection works—providing real-time, automated, and fair tolling based on actual road usage.

How is GPS-Based Toll Collection Better Than the Traditional Toll Collection System?

Conventional tolling practices in India, such as cash payments at toll plaza in India or subscribing to the NETC FASTag method, require human interactions, booths, and often long waits while in queue. Here is how GPS-based tolling provides a transformative alternative:

  1. Distance-Based Billing Unlike NETC FASTag, which incurs a flat fee at a toll booth, a GPS system helps access user charges based on real kilometers accumulated. This method is fair and saves money for those traveling shorter distances compared to those traveling longer distances.

  2. No queues and congestion By eliminating the bottleneck created at the toll booth, vehicles flow efficiently and more smoothly, resulting in reduced traffic congestion, vehicle idling, and emissions.

  3. Real-time Tolling The system is real-time, and allows communication in real time in regards to toll charges, user trip history, and deductions.

  4. Infrastructure-free Tolling GPS-based tolling eliminates the need for physical infrastructure, roadside scans, gantries, and utility passageways (as required with traditional tolling methods).

  5. Transparency and Accountability All toll transactions are recorded electronically, which eliminates leakages, human error, and corruption in toll collection responsibilities.

  6. Better resource allocation Government authorities can review data to inform analyse traffic patterns and ultimately decisions regarding infrastructure improvements.

  7. Environmental Benefits Since the GPS-based tolling system eliminates vehicle idling and improves flow, it reduces CO2 emissions and keeps the environment in mind.

Also Read --> Your Ultimate Guide to FASTag Exemptions

Will India Switch to GPS-Based Toll Collection System?

India is on the path to a GPS-based tolling system right now. As far back as 2021, the Union Minister Nitin Gadkari indicated that the government was piloting the GNSS model of toll collection cycles (as in, the kind that eliminates toll collections plazas outright). The pilot programs are already underway in a select few states, and the data from these programs are already being carefully analyzed.

Even though NETC FASTag is still mandatory and widely utilized, officials believe that eventually, a GPS based toll collection system will be the replacement of FASTag, but it may be a few years away from being implemented nationwide for the following reasons:

  • The need to equip millions of vehicles with OBUs

  • Integration with digital payment platforms

  • Upgradation of backend systems for real-time tracking and billing

Due to India's growing digital infrastructure and intent to pursue smart mobility, the transition to GPS tolling not only seems likely, but we could argue is only a matter of time. For now, we remain in this intermediate phase where both FASTag and GNSS-based tolling could coexist for some time.

Conclusion

The introduction of the GPS-based tolling system is a positive step in India's endeavor to create seamless, transparent and effective transportation opportunities. With no physical tolls, pricing based on distance travelled, and automating real-time payment means, there is enormous potential to improve travel for millions of people.

While the working model for GPS-based tolling might appear complicated, evidence shows the benefits of incentivising better highway use is clear from creating a greener option of travel, reducing travel time and waste in logistics, it is a large step in highway management. India is now on the path to change, and the experience of waiting at toll plazas will hopefully be of the past as the future of travelling is now satellite enabled.

Whether this is a rapid or slow transition is yet to be determined, one thing is certain - the future of tolling in India is definitely aiming for the heights.

Priti Burud

Content Writer

As a passionate content writer, Priti specializes in covering the latest trends in the automotive industry. Priti avidly explores the mobility sector, staying updated on technological advancements. Her enthusiasm for cars drives me to research extensively, brainstorm ideas, and craft engaging content that showcases the latest developments worldwide. Whether it's unveiling cutting-edge technology or analyzing industry shifts, she is dedicated to providing informative and insightful content for automotive enthusiasts and tech aficionados alike.

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