Executive Summary:
The Ministry of Road Transport and Highways addressed questions regarding the modernization of the toll collection system, infrastructure improvements in the North Eastern Region, and socioeconomic impact assessments of highway projects. Key initiatives include the implementation of FASTag, strategic road development in remote areas, and comprehensive impact assessments with rehabilitation measures. FASTag was mandated at all lanes on February 16, 2021.
Key Points / Main Content:
Toll Collection System Modernization:
* 98% of user fee payments on National Highways and Expressways are executed through FASTags.
* The implementation of FASTag has reduced the average waiting time at fee plazas from 734 seconds to 47 seconds.
* A GIS-based toll congestion monitoring solution is used.
* The government will implement barrier-free Electronic Toll Collection (ETC) using Automatic Number Plate Recognition cameras on selected National Highways as an added facility along with FASTag.
Infrastructure Development in North Eastern Region:
* The government is enhancing connectivity through strategic corridors, inter-corridor links, border roads, and High-Speed Corridors.
* Projects focus on upgrading roads, integrating them with national and regional corridors, and improving last-mile connectivity.
* Initiatives aim to reduce logistics costs, ensure all-weather access, boost trade and tourism, enhance socioeconomic opportunities, and strengthen national security.
Socioeconomic Impact Assessment:
* Social Impact Assessments (SIA) and environmental and social impact studies are conducted during the Detailed Project Report (DPR) stage.
* Rehabilitation and livelihood support are provided to project-affected persons (PAPs) in accordance with the RFCTLARR Act, 2013.
* Regular consultations with stakeholders ensure resettlement action plans address local needs and grievances are resolved promptly.
* A study by IIM, Bangalore indicates positive effects of National Highways on household income, logistics efficiency, business access, and travel time to essential facilities.
Impact Analysis:
National Highway Users:
Impact: Reduced waiting times at toll plazas and eventual implementation of barrier-free tolling, leading to seamless travel.
Action Required: Ensure FASTag is active and monitor for the implementation of ANPR-based tolling systems.
Residents of North Eastern Region and Remote Areas:
Impact: Improved connectivity and road infrastructure, leading to enhanced socioeconomic opportunities and access.
Action Required: Utilize the improved infrastructure for trade, tourism, and accessing essential services.
Project-Affected Persons (PAPs):
Impact: Potential impacts on livelihoods and land use due to highway projects.
Action Required: Participate in consultations, understand resettlement action plans, and seek prompt resolution of grievances.
Government/NHAI:
Impact: Monitoring and enforcement of FASTag usage, implementation of new tolling technologies, and assessment of project impacts.
Action Required: Continue monitoring toll congestion, implement barrier-free tolling, conduct SIAs, and provide rehabilitation support to PAPs.
Businesses:
Impact: Improved access to markets and factories, leading to increased efficiency and reduced logistics costs.
Action Required: Leverage improved infrastructure for business expansion and supply chain optimization.
Key Entities Referenced
National Highways Authority of India (NHAI): An autonomous agency of the Government of India, responsible for the management and development of National Highways.
FASTag: An electronic toll collection system in India operated by the National Payments Corporation of India (NPCI). It employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid or savings account linked to it.
Electronic Toll Collection (ETC): A system to automatically collect tolls electronically without requiring vehicles to stop.
Automatic Number Plate Recognition (ANPR): A technology used to read the license plates of vehicles. In this context, it is being used for barrier-free Electronic Toll Collection.
North Eastern Region: A region in India comprising the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
Social Impact Assessment (SIA): A process of evaluating the potential social effects of projects before they are undertaken.
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act): An Indian law that regulates land acquisition and provides rules for fair compensation, rehabilitation, and resettlement of affected persons.
Indian Institute of Management, Bangalore (IIM, Bangalore): A premier management institute in India, conducting a study to evaluate the impact of National Highways.
GOVERNMENT OF INDIA
MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
LOK SABHA
UNSTARRED QUESTION NO. 4775
ANSWERED ON 21ST AUGUST, 2025
MODERNISATION OF TOLL COLLECTION SYSTEM
4775. SMT. PRATIMA MONDAL:
Will the Minister of ROAD TRANSPORT AND HIGHWAYS
सड़क परिवहन औि िाजमार्ग मंत्री
be pleased to state:
(a) the steps taken to expand and modernise the National Highways
(NHs) toll collection system including the operational status and impact
of FASTag implementation on congestion and revenue mobilization;
(b) the measures being implemented to improve connectivity and road
infrastructure in the North Eastern Region and other remote areas to
support regional development and strategic priorities; and
(c) the manner in which the Government assesses the socio-economic
impact of large-scale highway projects on local communities and the
rehabilitation and livelihood support measures in place for project-
affected persons?
ANSWER
THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS
(SHRI NITIN JAIRAM GADKARI)
(a) Presently, 98% of all user fee payments other than exempted
vehicles on National Highways and Expressways are executed through
FASTags. Subsequent to mandatory implementation of FASTag at all
lanes on 16th February, 2021 (00:00 hrs), an Impact Assessment Study
on the FASTag System was undertaken by the National Highways
Authority of India (NHAI). The findings of the above study show a
significant reduction in average waiting time at fee plazas from 734
seconds under the manual fee collection system to 47 seconds under the
1Electronic Toll Collection (ETC) system. Further, congestion on fee plaza
is also monitored through a GIS-based toll congestion monitoring
solution.
In addition, to further increase the efficiency of tolling operation and in
order to ensure seamless and free-flow movement of vehicles along
national highways, the Government has decided to implement barrier-
free Electronic Toll Collection (ETC) System using Automatic Number
Plate Recognition Cameras on selected sections of National Highways as
an added facility along with FASTag where the user fee shall be charged
from the vehicle users without them having to stop, slow down or stay in
a given fee plaza lane.
(b) The Government is implementing comprehensive strategy to enhance
connectivity and road infrastructure in the North Eastern region and
other remote areas. This includes development of strategic corridors,
inter-corridor links, and border roads apart from High-Speed Corridors
and other National Highways in the North-Eastern region.
The projects focus on upgrading single or intermediate lane road,
integrating them with national and regional corridors, and improving last-
mile connectivity to remote settlements. These initiatives are aimed at
reducing logistics costs, ensuring all-weather access, boosting trade and
tourism, enhancing socio-economic opportunities, and strengthening
national security in strategically important areas, thereby supporting
regional development and strategic priorities.
(c) The socio-economic impact of large-scale highway projects
implemented by the Government is assessed through social impact
assessments (SIA) and environmental and social impact studies
conducted during the Detailed Project Report (DPR) stage. These
assessments evaluate potential impacts on livelihoods, land use, access
to services, and the overall economic profile of affected communities.
For project-affected persons (PAPs), rehabilitation and livelihood support
measures are implemented in accordance with the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 (RFCTLARR Act). Implementing agencies also
undertake regular consultations with stakeholders to ensure that
resettlement action plans address local needs and that grievances are
resolved promptly.
2Further, the preliminary findings of a study conducted by IIM, Bangalore
to evaluate the impact of National Highways indicates positive effects
across multiple sectors. Economically, household income and
expenditure have increased. Logistics efficiency has improved with
reduced costs. Businesses have benefited from better access to markets
and factories. Socially, travel time to schools and healthcare facilities
has decreased, enhancing accessibility. Overall, the study suggests that
National Highway construction has significantly contributed to socio-
economic growth.
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