More from Motoring

The idea of replacing FASTag with a GPS-based toll collection system isn’t new, but it’s coming closer to becoming a reality.

This new system, called the Global Navigation Satellite System (GNSS), will involve installing a satellite unit in each vehicle. Satellites will then calculate the distance travelled and the distance of toll used, applying a ‘per km’ rate.

Union Minister for Transport and Highways, Nitin Gadkari, announced in March that FASTag would be phased out. The new system will deduct money directly from the user’s bank accounts based on the distance travelled. While the cost per distance hasn’t been revealed, it seems unlikely that toll prices will decrease soon.

Testing is underway on the Bangalore-Mysore National Highway (NH-275) and the Panipat-Hisar National Highway (NH-709). Initially, the system will be implemented on major toll roads leading to major cities, eventually expanding to all Indian roadways.

What do you think about this new policy? Let us know in the comments!