NHAI plans electronic toll collection from next year

The National Highways Authority of India (NHAI), which is set to launch its first-ever tax-free public issue of secured redeemable non-convertible bonds (NCDs) on Wednesday, said it plans to roll out the electronic toll collection (ETC) system across the country in 2012.

New system

ETC will replace the existing cash-and-receipt tax payment system, Dr J.N. Singh, Member (Finance), NHAI, told reporters here on Tuesday. The vehicles' number-plates will be electronically-recorded and tax collected through a specially-created credit card for making such payments.

The tax thus collected would then be transferred to the account of the respective toll booths, he said. Currently, the people pay toll tax after an average of 60-70 km stretch of road. The ETC system, preliminary preparations for whose launch have been completed, is expected to make toll tax payment easier and faster as in the developed countries, Dr Singh said. Currently, India has 41 lakh km of roads, of which NHAI's share is 71,722 km. The State Highways are 1.66 lakh km long.