India lost ₹12000 cr every year because of long waiting at Toll Plazas
While FASTag reduced this loss to some extent, it is still inefficient
To bring it down to ₹0, Nitin Gadkari is getting rid of Toll Plazas & introducing a new tech
THREAD: here's all you need to know🧵
While FASTag reduced this loss to some extent, it is still inefficient
To bring it down to ₹0, Nitin Gadkari is getting rid of Toll Plazas & introducing a new tech
THREAD: here's all you need to know🧵
But first things first, is there even a need to collect tolls when we already pay a hefty road tax while buying the vehicle?
Look at this poll that we conducted yesterday in our WhatsApp Community.
Most people don’t know why toll tax is collected.
Look at this poll that we conducted yesterday in our WhatsApp Community.
Most people don’t know why toll tax is collected.
You pay a toll on roads that the government doesn't build because it's expensive.
Like highways.
These are built by a private company which then collects toll for a certain number of years until they get the entire cost of the highway, plus the profit.
Like highways.
These are built by a private company which then collects toll for a certain number of years until they get the entire cost of the highway, plus the profit.
On the other hand, road tax is for roads that the government is bound to make and maintain, like in urban & rural areas
This is the basic difference between road tax and toll tax.
Now we know why tolls are important
Let’s dive into what’s up with FASTag & the new GPS system👇
This is the basic difference between road tax and toll tax.
Now we know why tolls are important
Let’s dive into what’s up with FASTag & the new GPS system👇
FASTag has been a boon for the toll system in India.
It has reduced the average waiting time from 8 mins to 47 secs,
but it has still not been very efficient to avoid congestion.
You see, Toll-Plazas are structurally bottle-necks & Fastag doesn’t solve the structure problem.
It has reduced the average waiting time from 8 mins to 47 secs,
but it has still not been very efficient to avoid congestion.
You see, Toll-Plazas are structurally bottle-necks & Fastag doesn’t solve the structure problem.
In addition to this, even the toll collection efficiency has not been 100%.
The total number of vehicles in India is ~127 million, but only 90 million are paying toll.
That means – approx. 25% of the vehicles are not paying tolls.
But how is this even possible with FASTag? 🤔
The total number of vehicles in India is ~127 million, but only 90 million are paying toll.
That means – approx. 25% of the vehicles are not paying tolls.
But how is this even possible with FASTag? 🤔
See, when a FASTag-attached vehicle approaches a toll plaza, a scanner identifies the tag and deducts tax from the linked bank account or the prepaid card.
But Nitin Gadkari has himself acknowledged the presence of corruption at the grass root level.
But Nitin Gadkari has himself acknowledged the presence of corruption at the grass root level.
There are highly connected insiders who are aware of the know-how of the FASTag system – how & when to switch it off.
This is a direct theft from the government.
FASTag is good but these loopholes need to be plugged.
That’s exactly what this new satellite-based system does.
This is a direct theft from the government.
FASTag is good but these loopholes need to be plugged.
That’s exactly what this new satellite-based system does.
The new system will remove all Toll-Plazas and use GPS technology instead of the Fastag, and use satellite data to collect the toll.
Although the exact technology hasn’t been decided, Nitin Gadkari said they’ll use the finest state of the art tech in this.
But is it necessary?
Although the exact technology hasn’t been decided, Nitin Gadkari said they’ll use the finest state of the art tech in this.
But is it necessary?
Does it make sense to build a new infrastructure for this when you have such a massive country-wide toll system already functioning so well all across the country?
It does actually…because the new system reduces infrastructure and manpower costs.
It does actually…because the new system reduces infrastructure and manpower costs.
So, even in remote places, this system can collect tolls without any heavy infrastructure investment & that makes it scalable!
Plus this allows smoother functioning of economic activities.
You can’t imagine how much a truck standing idle waiting for its turn costs the economy.
Plus this allows smoother functioning of economic activities.
You can’t imagine how much a truck standing idle waiting for its turn costs the economy.
Also, the number plates required for this have already been issued since 2019.
All the new cars come with this new number plate and the older ones will have to get one.
All the new cars come with this new number plate and the older ones will have to get one.
This new system will save you a lot of money as well.
Suppose you’re crossing a highway which has a 60 km distance between two toll plazas.
With FASTag, you’ll have to pay for the full 60 kms even if you exit it in 30 kms.
With the new GPS tech, you’ll only be charged 50%.
Suppose you’re crossing a highway which has a 60 km distance between two toll plazas.
With FASTag, you’ll have to pay for the full 60 kms even if you exit it in 30 kms.
With the new GPS tech, you’ll only be charged 50%.
That means – charges will be based on the amount of road you used!
But is it already tried & tested?
Yes! Such a system works across Europe allowing smooth flow of regulated traffic across its countries.
It’s called EETS or European Electronic Toll Service.
But is it already tried & tested?
Yes! Such a system works across Europe allowing smooth flow of regulated traffic across its countries.
It’s called EETS or European Electronic Toll Service.
This helps european road users pay tolls throughout Europe without any interruption.
If you’re travelling in several countries within the EU, you’ll experience seamless travel since all the EU countries have accepted this standardised toll system.
If you’re travelling in several countries within the EU, you’ll experience seamless travel since all the EU countries have accepted this standardised toll system.
And when such a technology is available, and your country is ready for it, then why not implement it, right?
Since Toll Plaza fundamentally doesn’t have a use-case anymore
When you don’t need something, it’s better to remove it, than create systems to make it smoother.
Since Toll Plaza fundamentally doesn’t have a use-case anymore
When you don’t need something, it’s better to remove it, than create systems to make it smoother.
But is India ready for such a technology?
Not everyone has a digital payment system or smartphones with UPI, then how will they collect Tolls from them?
So, let’s show you some data here.
Not everyone has a digital payment system or smartphones with UPI, then how will they collect Tolls from them?
So, let’s show you some data here.
Fastags basically use your UPI for automatic deduction.
And this tech has reached 96% penetration. That means 96% of the vehicles crossing tolls have a Fastag.
That means we are ready for such a technology (even better than Europe where there’s nothing like UPI)
And this tech has reached 96% penetration. That means 96% of the vehicles crossing tolls have a Fastag.
That means we are ready for such a technology (even better than Europe where there’s nothing like UPI)
The biggest problem with this is that India doesn’t have laws to punish anyone evading toll tax.
Now if someone doesn’t get the appropriate number plate and setup the appropriate system, they can just pass by the road without paying.
To solve this, a new bill will be passed.
Now if someone doesn’t get the appropriate number plate and setup the appropriate system, they can just pass by the road without paying.
To solve this, a new bill will be passed.
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