New Delhi, Apr 24: India is set to take a major leap toward smarter and faster road travel with the introduction of a barrier free tolling system on multiple national highways by December, Union Minister for Road Transport and Highways Nitin Gadkari announced on Friday.
Speaking at the second edition of the Logistics Shakti Summit & Awards 2026, Gadkari emphasized that modern infrastructure and technology driven reforms are essential to reduce the country’s logistics costs and enhance economic competitiveness.
The upcoming tolling mechanism will leverage advanced technologies such as Automatic Number Plate Recognition (ANPR), artificial intelligence analytics, and RFID-based electronic toll collection through FASTag. This integrated approach will allow vehicles to pass through toll points without stopping, ensuring uninterrupted highway movement and reduced congestion.
Under the new system, high-performance cameras and sensors will automatically identify vehicles and deduct toll charges digitally. This move is expected to significantly reduce travel time, fuel consumption, and traffic bottlenecks that are commonly experienced at traditional toll plazas.
To ensure compliance, authorities will issue electronic notices to violators who fail to pay toll charges. Continued non-payment could lead to penalties, including suspension of FASTag services and other actions linked to the VAHAN vehicle registration system.
Highlighting the broader economic impact, Gadkari pointed out that reducing logistics costs is critical for India’s ambition to become a global economic powerhouse. He noted that recent studies conducted by premier institutions such as Indian Institute of Technology Madras, Indian Institute of Technology Kanpur, and Indian Institute of Management Bangalore indicate that India has already made notable progress in this area.
According to the report, the expansion of expressways and development of economic corridors have helped reduce logistics costs from 16 percent to nearly 10 percent. However, Gadkari stressed that further reduction to single digits is necessary to match global standards.
He compared India’s logistics cost structure with other major economies, noting that it stands at around 12 percent in the United States and Europe, while China maintains a more efficient range between 8 to 10 percent.
Addressing energy concerns, the minister also highlighted India’s heavy dependence on fossil fuel imports, which currently meet nearly 87 percent of the nation’s oil demand. This reliance not only impacts the economy but also contributes to environmental challenges.
Gadkari underscored the importance of transitioning toward cleaner energy alternatives, including biofuels and green hydrogen. He described green hydrogen as a key fuel for the future but acknowledged that reducing the operational cost of hydrogen fuel stations remains a critical challenge.
The minister reiterated that infrastructure development, technological innovation, and sustainable energy adoption are central to India’s growth strategy. He linked these initiatives to the broader vision of Prime Minister Narendra Modi, who aims to transform India into a USD 5 trillion economy in the coming years.
With the rollout of barrier-free tolling, India is moving closer to a more efficient, digitally connected transport network—one that promises faster travel, lower costs, and a stronger foundation for economic expansion.