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  • Context (Swarajya): NHAI is set to launch GPS-based toll collection on various routes throughout the country. It is set to replace the current FASTag system.

How does a GPS-based tolling system operate?

  • GPS Tracker: Vehicles get a tracking device for movement monitoring.
  • Geofencing: Highways will be geo-fenced, creating virtual boundaries.
    • To set up a geo-fencing service, an administrator employs GPS– or RFID-enabled software to establish a virtual boundary around a specified location.
    • Software detects mobile devices entering or leaving areas.
  • Tolls are charged based on distance at highway exits.
  • No toll plaza stops are required, thanks to sensor-based technology.
  • Users must register vehicles and link them to bank accounts for toll payments.
  • Concerns: Privacy issues as the system tracks the precise location of vehicles.
  • Alternative approach: Automatic number plate recognition cameras for tracking vehicle entry and exit, eliminating the need for GPS devices and allowing toll collection on the go.
  • Countries: it has already been implemented in several countries including Germany and Singapore.

What is Geofencing?

  • Geofencing is the usage of a virtual geographic boundary around a physical location, which allows users to detect when someone enters or leaves a location.


  • Geo-fencing services are also used by enterprises to automate attendance, timecards, monitor employees in the field, and keep track of company property.
  • Geo-fencing work on Jaipur-Delhi-Agra e-highway is being implemented by various geospatial tech companies in association with National Highways on pilot basis.
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