GS 3: EconomyGS 2: GovernancePrelims

Barrier-less tolling systems: govt. to revisit bank-centric bidding model, Pg13

Government reconsiders bank-centric bidding for barrier-less tolling to enhance scalability and address FASTag limitations, aiming for seamless highway toll collection.

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Key Highlights:

  • Government is re-evaluating the bank-centric bidding model for the new barrier-less tolling system.
  • Eight projects have been awarded out of a target of 25 for FY2025.
  • The Multi-Lane Free Flow (MLFF) system aims to reduce congestion on national highways.
  • A draft amendment to the Central Motor Vehicles Rules, 1989 defines “unpaid user fee” to deter violators.

Detailed Insights:

  • The current model prioritizes banks as primary bidders and system integrators, but it is not scalable beyond the initial 25 MLFF systems.
  • MLFF system will use FASTags, Vehicle Registration Number (VRN), high-performance RFID Readers, and automatic number plate recognition (ANPR) cameras for toll payments.
  • The proposed amendment allows for withholding services like registration renewal and insurance issuance for vehicles with unpaid toll fees.
  • The Ministry has approached NITI Aayog to examine the principles of tolling due to increasing toll fees on highways.

Key Concepts Involved:

  • Multi-Lane Free Flow (MLFF): A barrier-less tolling system that enables toll payments without stopping vehicles.
  • FASTag: An electronic toll collection system using radio-frequency identification (RFID) technology.
  • Automatic Number Plate Recognition (ANPR): A technology that automatically reads the vehicle registration number.
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