Union Road Transport and Highways Minister Nitin Gadkari has confirmed that the widespread adoption of FASTag has significantly boosted India's toll collections. Speaking at the Global Fintech Fest 2026 in Mumbai, Gadkari stated that FASTag has added approximately ₹7,000 crore to government revenues, marking a 10% increase and bringing the total toll booth income to over ₹82,000 crore.
The minister attributed this surge to enhanced compliance, reduced leakage, and faster processing times since FASTag was made mandatory in 2021. Currently, penetration at national highway toll plazas exceeds 98%, with more than 13 crore tags issued across the country.
Barrier-Free Tolling by 2027
Looking ahead, Gadkari outlined ambitious plans for the next phase of digital tolling. He announced that all national highway toll booths are slated to become barrier-free by March 2027. This transition will be facilitated through Multi-Lane Free Flow (MLFF) systems, which integrate FASTag technology with automatic number plate recognition (ANPR).
The barrier-free model, currently undergoing pilot implementation, is projected to yield substantial financial benefits. Gadkari anticipates that once fully operational, this system could generate an additional ₹7,000–8,000 crore annually in collections, while simultaneously delivering a departmental benefit of ₹20,000–25,000 crore per year to the Government of India.
Enhanced Efficiency and Cost Reduction
Beyond increased revenues, the digital transformation of tolling is expected to drastically improve operational efficiency and reduce costs. Gadkari noted that current operational expenses for toll collection stand at around 12–15%. However, he believes that technology-driven systems could slash these costs to a mere 2–4%, resulting in further savings of approximately ₹6,000–7,000 crore.
Furthermore, the shift to barrier-free tolling is set to significantly reduce waiting times for commuters, which previously averaged around 12 minutes at traditional plazas. This initiative is part of a broader vision for developing “intelligent highways” and a seamless digital mobility ecosystem, ensuring tolling is transparent and well-integrated with other transport and fintech platforms.
“When the system will go fully live, then our department alone would deliver a benefit of ₹20,000–25,000 crore per year to the Government of India because of the use of FASTags,” Gadkari stated, emphasizing the program’s role in funding future highway expansion and maintenance.
With FASTag already proving its financial impact and barrier-free tolling poised to add similar gains, the government sees this program as a critical lever for infrastructural development and an improved commuter experience.