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Etc Systems Inaugurated by Ministry of Road and Transport

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Our Minister of Road and Transport recently inaugurated the ETC systems, a hi-tech facility in the name of FASTag, It is a uniform one and acceptable standard in service. It also immediately avoids difficulties and crowding of vehicles on the toll booths, and also it saves the time and fuel. This improves the significance when recent research by Travel Corporation of India and IIM-Kolkata estimated that rupees sixty thousand crore was the lost year to delays on highway check posts and rupees of twenty seven thousand crore lost to avoidable human factors.

ETC is installed at fifty five toll plazas and integrated with CCH operators, ICICI Bank & Axis Bank. A pilot project for an inter-operable ETC system of ten toll plazas between Mumbai and Ahmadabad has also tested and found as successful. On the Mumbai-Delhi highway, around half of the 350 toll points have been converted till date.

By the March of 2015, one hundred and twenty five toll plazas would be scrapped in the country. Toll collection at 65 road projects has already stopped. Ministry officials have asked to identify projects up to rupees of hundred crore in investments, where either the cost has been recovered or was about to be recovered and with projects where collection of toll has become unviable. Till now, 74 such public funded tolls have been identified and out of those, sixty one have been shut down. Similarly, projects of investment less than Rupees of hundred crore under PPP are also being identified and ways are being explored to shut down all such toll plazas post-addressing contractual obligations.

The government incorporated the ETC lanes as a manual one in the contracts awarded for all the future highway projects. It also includes the ETC system in the way of supplementary agreement in the projects which have not started. For implementing the ETC all over the country, the IHMC made an up new set up under the Companies Act 1956, with equal participation from the NHAI nearly 25%, concessionaires nearly 50% and financial Institutions nearly 25% has constituted.

IHMC will collect tolls and manage the project in the way of strategic, administrative, legal, technical and commercial, providing services which include the toll transaction and clearing operations, helpdesk support, call centers for the incident management, intelligent transport systems.

Amendments made in the Central Motor Vehicle Rules, 1989 for fitment of Radio Frequency Identification tag on vehicles for ETC. Apart from Rs. 2.48 crore released in 2012-13, and an amount of Rs. 17.288 crore has released during 2013-14 for implementing ETC on fifty one public-funded projects operated by NHAI. The Government has embarked on a plan for building India’s highway network through various phases of the NHDP which are being financed largely by users of improved highways. The existing NH need regular maintenance and up gradation for which fund mobilization is an important one. The user fee for the NH is levied as per the NH Fee Rules, 2008 and its amendments. For projects completed and for which contracts signed before 5th December 2008, the earlier set of National Highways Rules, 1997, applies.

Currently there is no uniform toll levy across India. Further, Toll, Annuity and Public Funded Projects have different toll collecting agencies. Commuters are also sometimes overcharged or undercharged, while collection is not always reported or is under-reported by agents. The electronic toll collection would be a solution for these ills.


  1. How we can make a uniform toll level across India? Give some possible Strategies to make successful form in uniformity.
  2. How price standardization will be made when uniform toll gate were made in across India?

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ETC Systems Inaugurated by Ministry of Road and Transport. (2018, December 11). GradesFixer. Retrieved December 3, 2021, from
“ETC Systems Inaugurated by Ministry of Road and Transport.” GradesFixer, 11 Dec. 2018,
ETC Systems Inaugurated by Ministry of Road and Transport. [online]. Available at: <> [Accessed 3 Dec. 2021].
ETC Systems Inaugurated by Ministry of Road and Transport [Internet]. GradesFixer. 2018 Dec 11 [cited 2021 Dec 3]. Available from:
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