Toll collection on national highways (NHs) through the FASTag system hit a record ₹193.15 crore in a day recording 1.16 crore transactions, a development that reflects on the growing traffic on highways and rising income for operators.

On April 29, the daily toll collection through FASTag achieved a historic milestone, reaching an all-time high collection of ₹193.15 crore with 1.16 crore transactions recorded in a single day, the National Highways Authority of India (NHAI) said.

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Each time a vehicle passes through a toll plaza, money is deducted from the associated FASTag account. Therefore, individuals will have to check their FASTag balance and recharge now and then before heading on a long road trip. 

FASTag: 3 Ways to check your FASTag account balance

Since the mandatory implementation of FASTag in February 2021, the number of toll plazas utilising this technology has risen from 770 to 1,228, including 339 State toll plazas. With a penetration rate of around 97 per cent, and over 6.9 crore FASTag issued to users, the system has significantly improved the user experience by reducing waiting times at NH fee plazas.

“The consistent and progressive adoption of FASTag by highway users has not only enhanced the efficiency of toll operations but also led to a more precise valuation of road assets, attracting further investment in India’s highway infrastructure,” the Authority noted.

Toll roads are preferred by investors looking to pool road assets together under infrastructure investment trusts (InvITs) to generate healthy returns and benefit from inflation hedging. Therefore, toll roads account for around 70 per cent assets held under road sector InvITs.

NHAI is also actively working towards finalising necessary requirements for implementation of the Global Navigation Satellite System (GNSS) based tolling system for allowing free-flow tolling system in India.

Rising toll collections

Earlier this month Crisil Ratings in a report earlier this month said that a significant hike in toll rate stemming from elevated inflation, and healthy traffic growth on NHs will help toll road operators grow revenue by a significant 16-18 per cent in FY23.

Toll revenue growth will remain strong in FY24 as well, but lower at 9-11 per cent, riding on above average traffic growth. In FY22, India’s cumulative toll collection stood at ₹34,742 crore against Rs 28,681 crore in FY21.

In FY24, traffic growth is expected to taper to 4-6 per cent, but will remain higher than the 4-year compound annual growth rate of 2-3 per cent seen through fiscal 2022. Traffic growth is closely linked to real gross domestic product growth, which is expected to decline to 6 over cent in FY24 from 7 per cent in FY23, Crisil said.

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