Context:
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The Government of India is revisiting the bank-centric bidding model for implementing barrier-less tolling on national highways.
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The move aims to improve scalability, competition, and operational efficiency of the Multi-Lane Free Flow (MLFF) tolling system, amid concerns over FASTag limitations and rising toll charges.
Key Highlights:
Status of MLFF Rollout
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Target for FY2025: 25 MLFF projects
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Awarded so far: 8 projects
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MLFF seeks to:
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Eliminate toll booths
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Enable seamless, non-stop toll collection
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Reduce congestion and fuel wastage
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Why Revisit the Bank-Centric Model
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Current framework:
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Banks as primary bidders and system integrators
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Issues identified:
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Limited scalability beyond initial projects
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Operational and technological constraints for banks
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Reduced competition and innovation
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Government exploring alternative bidding structures to:
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Attract specialised technology players
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Improve nationwide deployment
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Technology Stack for Barrier-Less Tolling
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FASTag (RFID-based)
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Vehicle Registration Number (VRN) mapping
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High-performance RFID readers
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Automatic Number Plate Recognition (ANPR) cameras
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Objective: Redundancy and accuracy in toll detection and billing.
Regulatory Changes Underway
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Draft amendment to the Central Motor Vehicles Rules, 1989:
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Defines “unpaid user fee”
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Enables enforcement actions against violators
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Proposed deterrents include:
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Withholding vehicle registration renewal
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Blocking insurance issuance
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Other transport-related services until dues are cleared
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Institutional Review of Tolling Principles
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The Ministry has approached NITI Aayog to:
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Review tolling principles
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Examine public concerns over rising toll fees
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Ensure balance between user affordability and infrastructure financing
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Governance & Economic Significance
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Improved tolling efficiency can:
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Lower logistics costs
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Enhance highway throughput
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Support ease of doing business
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Highlights challenges in:
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Public–private partnerships
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Technology-led governance at scale
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UPSC Relevance (GS-wise):
GS 3 – Economy
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Transport infrastructure and logistics efficiency
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PPP models and digital payments
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Impact of tolling on trade and mobility
GS 2 – Governance
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Technology-driven public service delivery
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Regulatory design and enforcement
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Role of policy institutions like NITI Aayog
Prelims Focus:
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MLFF vs conventional toll plazas
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FASTag and ANPR technologies
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Central Motor Vehicles Rules, 1989 amendments
Mains Enrichment:
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Analyse the governance challenges in implementing barrier-less tolling at a national scale.
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Discuss how technology and regulation can jointly reduce leakages, congestion, and compliance costs in highway tolling.