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Updated: Jan 27, 2020

Brief Analysis (Importance level : Low)


It is an electronic toll collections system by National Highways Authority of India (NHAI) It works on the principle of frequency identification fixed on the windshield of vehicles detected through ETC readers on Toll plazas.


  • It seeks to save time, fuel and environment by reducing time and fuel wastage.

  • Because after every 60 to 70km NHAI has mandated a toll. And each toll takes about 10 minutes halt which wastes both time and energy.

  • It will specifically benefit transport and logistics business saving reasonable cost in their business.

  • According to a study conducted by IIM Calcutta almost 60,000 crores of fuel is wasted in India due to halts at tolls. Annually.

  • Fastag combined with GST has reduced substantially the time to commute from place A to B Subsequently, it will reduce carbon footprint of the country making realization of SDG's more close.

  • However govt will take detailed study of its impact on environment once its compliance reaches 100% • But major challenge remains in its implementation.

  • This has two components First, making tolls equip with ETC readers. Second making vehicles use Fastag.

  • According to NHAI all the 525 toll under it has ETC readers. But functions hybrid lines for vehicles that doesn’t have Fastag.

  • Govt has now made Fastag mandatory for all new vehicles as well as have set date for old ones to get fastag.

  • All the benefit to locals and concessions provided by NHAI will be transmitted to Fastag software as well.


  • Inventory management of trucks and other commercial vehicles for logistics companies

  • Use of fastag in all parking across the nation BUT IT DEPENDS ON GOVT SHARING DATA WITH SUCH ENTITIES.

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