Karnataka collects ₹11,112 crore through FASTag in three years

Karnataka's toll revenue from FASTag surpasses ₹11,000 crore in three years, reflecting a major shift to electronic tolling.

Karnataka has collected over ₹11,000 crore in toll revenue through FASTag transactions alone in the last three financial years, showing the rapid shift to electronic tolling on National Highways in the State.

According to data by the Ministry of Road Transport and Highways, ₹3,049.09 crore was collected through FASTag in 2022-23. The figure increased to ₹3,839.14 crore in 2023-24, and rose further to ₹4,224.08 crore in 2024-25. The cumulative collection during the three-year period stands at ₹11,112.31 crore.

Replying to an unstarred question by MP G. C. Chandrashekhar in the Rajya Sabha on February 11, Union Minister for Road Transport and Highways Nitin Gadkari said that Electronic Toll Collection (ETC) now accounts for more than 98% of user fee collection across the country, including Karnataka. The data indicates near-universal adoption of FASTag at toll plazas, significantly reducing dependence on cash transactions.

The Minister explained that FASTag transactions are processed within a secured ecosystem involving the Toll Management System Software at plazas, the acquirer bank, the National Payments Corporation of India (NPCI) as the Central Clearing House, and the FASTag issuer bank. No transaction can be completed without the participation of all three stakeholders. Each toll deduction is communicated to the user and recorded in a central repository, ensuring transparency and accountability in toll operations.

Mr Gadkari stated that to curb toll evasion and prevent revenue leakage, the National Highways Authority of India (NHAI) issued a Standard Operating Procedure (SOP) on January 25, 2024. The SOP mandates surprise checks at toll plazas and regular monitoring to ensure that all cash and FASTag transactions are processed strictly through the Toll Management System Software, thereby minimising the scope for manual intervention and discrepancies.

On toll revisions, Mr. Gadkari clarified that user fees are collected under the National Highways Fee (Determination of Rates and Collection) Rules, 2008. Rates at publicly funded toll plazas are revised annually based on changes in the Wholesale Price Index (WPI). In contrast, toll plazas operated by concessionaires revise rates in accordance with the terms specified in their concession agreements.