NEW DELHI: To ensure smooth movement of vehicles throughout the country, the Union Ministry of Transportation and Highways has finalized a toll collection system based on global positioning system (GPS) technology. The measure will leave India free of toll barriers.
Over the next two years, the toll will be deducted from a linked bank account based on the movement of vehicles, the minister of road transport and highways, Nitin Gadkari, said on Thursday.
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“We have completed a GPS system with the help of the Russian government. In two years, India will be toll naka mukt, “Gadkari said at ASSOCHAM Foundation Week on Thursday.
While all commercial vehicles are equipped with vehicle tracking systems, the government will also devise a mechanism to install GPS technology in older vehicles.
The toll revenue of the National Highway Authority of India (NHAI) could increase up to ₹1.34 trillion in five years, using GPS technology. “Yesterday there was a presentation in the presence of the secretary of road and highway transport and the president of NHAI, through the use of GPS technology for the collection of tolls, we expect that our toll revenues in the next five years will be ₹1,34,000 crore, “said the minister, adding that he expects the collections ₹34,000 crore this prosecutor.
The government has been taking steps to allow smooth movement of vehicles across the country. For the past year, the Center has been aggressively trying to push for mandatory use of FASTags on national highways, to reduce traffic congestion at toll plazas and unnecessary fuel consumption, thereby curbing pollution. The use of the electronic toll collection device also enables cashless transactions, making toll collection transparent and helping the government to cover revenue losses.
The use of FASTag has increased significantly in recent months. According to a statement from NHAI in November, FASTag contributes nearly three-quarters of the total toll collection as of now, with daily cleaning at ₹92 crore compared to ₹70 crore a year ago.
In another note, the minister said that the government has taken note of the increase in domestic steel prices, which have risen 55% in the six months, an issue that is cause for concern. “I wrote a letter to the prime minister telling him that we must sit down and make a decision at the highest level, as reducing productivity and increasing costs is not a good strategy. The same is true of the cement sector and such policies are not going to be viable in the long term. We need to develop a long-term policy in this regard for cement and steel manufacturers. There is a need for uniformity in policy, “he added.
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