The implementation of FastTags at over 1128 toll plazas pan India in collaboration with the National Highways Authority of India (NHAI) has significantly reduced waiting times and streamlined toll operations, leading to a roughly 40% increase in toll revenue from Rs 48,000 crore annually last year to touch Rs 67,000 crore by the end of FY24.
The FASTag system has increased from (centre) run 770 toll plazas to 1,228 toll plazas, including 339 state toll plazas, according to MoRTH data.
In line with revenues generated from fast tags, toll revenues showed a 40% YoY increase in the first half of FY24. "High-frequency indicators such as GST and fuel consumption indicate FY24 is slated to register record toll revenues of Rs 67,000 crore," said Rajan Jain, Head of Credit Research at SBI Market Caps.
Earlier towards the end of April, the daily toll collection through the FASTag system achieved a historic milestone, reaching an all-time high collection of Rs 193.15 crore, with 1.16 crore transactions recorded in a single day," the Ministry of Road Transport & Highways had said in a statement.
If one looks at the overall toll collection on National Highways, it has experienced significant growth in recent years, particularly after the implementation of FASTag.
Currently, for the year 2022–23, Uttar Pradesh is leading with Rs 5,583.43 crore in toll collections, followed by Rajasthan at Rs 5,084.50 crore, followed by Maharashtra at the number three position with Rs 4,660.21 crore, despite having the highest national highway network.
Currently, five states—UP, Rajasthan, Maharashtra, Gujarat, and Tamil Nadu—account for 50 percent of the toll collected in India for the last half a decade or so, MoRTH data suggests.
"The consistent and progressive adoption of the FASTag system has resulted in a more precise valuation of road assets, attracting additional investment in India's highway infrastructure. The government remains committed to providing a hassle-free tolling experience for all road users and is actively working towards implementing a Global Navigation Satellite System (GNSS)-based tolling system for allowing free-flow tolling in India," said another analyst.