NHAI increases tolls across highways by 5%

NHAI increases tolls across highways by 5%


Motorists using expressways will face a nationwide toll hike averaging 5% starting from June 3, 2024, as per the National Highways Authority of India (NHAI).


GS-02 (Government policies and interventions)

Key Highlights:

  • The annual toll fee revision, typically effective from April 1, was postponed due to the Lok Sabha election.
  • The toll rate adjustment is part of an annual exercise, with rates revised based on changes in the wholesale price index (CPI)-based inflation.
  • The new toll rates were confirmed by a senior NHAI official, with implementation set for early June.

New Proposed Highway Tolling System in India:

  • Advanced Satellite Navigation:
    • The new tolling system employs the Global Navigation Satellite System (GNSS), incorporating India’s GPS Aided GEO Augmented Navigation (GAGAN) for precise location tracking.
    • GNSS encompasses various satellite-based navigation systems, including the US Global Positioning System (GPS), offering enhanced accuracy and global navigation information.
  • On-Board Units (OBU):
    • Vehicles will be equipped with an On-Board Unit (OBU), a tracking device that communicates with satellites to pinpoint the vehicle’s location.
    • The coordinates of national highways are digitally logged, allowing software to calculate tolls based on the distance travelled.
  • Cashless Transactions:
    • Toll fees are deducted from a digital wallet linked to the OBU, ensuring seamless and cashless transactions.
    • This system aims to eliminate the need for traditional toll plazas, facilitating smoother traffic flow.
  • Enforcement Mechanisms:
    • Gantries equipped with CCTV cameras will be installed along highways to monitor compliance and deter toll evasion.
    • This infrastructure will initially coexist with the existing FASTag system, with a potential future mandate for OBUs on all vehicles under consideration.


  • Improved Travel Efficiency: Frictionless toll collection is anticipated to result in quicker travel times and a more efficient highway network.
  • Reduced Traffic Congestion: The elimination of toll plazas is expected to significantly reduce traffic bottlenecks, particularly during peak hours, leading to smoother traffic flow.
  • Fairer Toll Billing: The proposed system introduces a pay-as-you-use model, ensuring users are charged only for the actual distance travelled, promoting fairness in toll billing.