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AI-Based Digital Toll Collection Across India by 2026-End, Says Nitin Gadkari

Written by: Team Angel OneUpdated on: 17 Dec 2025, 9:05 pm IST
AI-enabled toll system to replace FastTag across India by 2026-end; aims to reduce wait time, save ₹1,500 crore in fuel and increase revenue by ₹6,000 crore.
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Union Minister Nitin Gadkari has announced that an AI-driven toll collection system will be operational across all national highways in India by the end of 2026.  

This technological shift will replace existing FastTag systems with multi-lane free flow tolling, which will identify vehicles using number plate recognition and satellite tracking. 

AI Technology Replacing FastTag for Seamless Tolling 

The upcoming toll system will eliminate vehicle stoppages at toll plazas entirely. Vehicles will travel through toll points without needing to slow down, maintaining speeds of up to 80 km per hour.  

The initiative uses advanced AI for number plate recognition combined with satellite technology to automatically deduct toll charges. 

Currently, FastTag has reduced average toll payment time to under 60 seconds. This upgrade is expected to further bring it down to zero stoppage time. This new mechanism will bring in added transparency and significantly eliminate manual intervention along toll points. 

Expected Savings and Revenue Increase 

According to Nitin Gadkari, implementing the AI-powered tolling system will result in potential fuel savings amounting to ₹1,500 crore annually.  

Additionally, it is projected to increase government toll revenue by ₹6,000 crore. The AI model will also minimise chances of toll evasion since the system will automatically recognise number plates and charge accordingly. 

Read More: Ethanol-Blended Petrol Discussed in Parliament for Its Reported Benefits! 

Scope of Implementation and Clarification on Roads 

The implementation is focused only on national highways, excluding state highways and inner-city roads. The minister pointed out that grievances reported on social media often misidentify local or state roads as national highways.  

He clarified that the central government is responsible only for national highways, and the AI toll system will apply to these roads alone. 

Conclusion 

By the end of 2026, commuters on national highways can expect an AI-based toll system without physical stoppages. This system aims to save travel time, reduce fuel consumption and boost transparency and toll collections. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Dec 17, 2025, 3:35 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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