Mumbai:- Union Road Transport and Highways Minister Nitin Gadkari said on Friday that full implementation of the electronic toll collection system ‘FASTag’ could generate an annual benefit of up to Rs 25,000 crore for the government.
He said all toll plazas on national highways would start operating seamlessly by March 2027. Speaking at the Global Fintech Summit here, Gadkari said, “When this system is fully implemented, the use of FASTag alone will enable our department to contribute an annual benefit of Rs 20,000 crore to Rs 25,000 crore to the Government of India.”
He said the use of FASTag had increased revenue from toll plazas by 10 per cent, or around Rs 7,000 crore, and the revenue had now crossed Rs 82,000 crore.
Gadkari said the seamless toll plazas currently being tested were expected to generate another 10 per cent increase, amounting to Rs 7,000 crore to Rs 8,000 crore.
Gadkari said that besides this, the operating cost of toll plazas had also declined from 12 per cent earlier to 2–3 per cent. He said more than 70 per cent of toll plazas would become seamless by the end of December this year and the figure would reach 100 per cent by March next year.
Gadkari said that reduced chances of vehicles getting stuck at toll plazas would also save time for vehicle owners. According to studies, he said, annual savings of more than Rs 5,250 crore had been achieved through fuel savings alone.