New Delhi, India has indefinitely suspended its ambitious plan to introduce a satellite-based toll collection system on national highways, citing serious concerns over citizen privacy and national security, senior government officials have confirmed.
The Global Navigation Satellite System (GNSS)-based tolling mechanism — widely regarded as Union Road Transport and Highways Minister Nitin Gadkari’s signature infrastructure reform — was intended to replace physical toll plazas with a “distance-travelled” charging model. Under the scheme, vehicles would have been fitted with mandatory on-board tracking units that would continuously record location, speed, route and stoppages, with tolls deducted automatically from linked bank accounts or Fastag wallets.
Trials of the technology had already been conducted on the Bengaluru-Mysuru expressway and select stretches in Haryana. However, the programme has now been placed in cold storage following internal reviews that highlighted the risk of misuse of real-time location data.
A senior official at the Ministry of Road Transport and Highways (MoRTH) told reporters that the decision was taken “keeping national security and citizens’ privacy paramount”. The official, speaking on condition of anonymity, noted that continuous tracking could potentially expose the movements of VIPs and senior officials, besides enabling large-scale surveillance of ordinary citizens.
MoRTH Secretary V. Umashankar confirmed the suspension in an interview with Hindustan, stating: “The satellite-based toll collection scheme has been kept in abeyance. The technology would have allowed tracking of vehicle location and driver data. We are now prioritising an Automatic Number Plate Recognition (ANPR) system that will not require any device inside the vehicle.”
Under the ANPR alternative, cameras installed on highways will read number plates and deduct tolls directly from existing Fastag wallets, preserving the barrier-free experience without continuous location tracking.
The ministry had already moved to quell speculation earlier this year. In April 2025, it issued a clarification stating that no decision had been taken to roll out GNSS tolling nationwide from 1 May 2025, and that media reports suggesting an imminent switch from Fastag were incorrect.
The setback is a rare instance of a high-profile Indian infrastructure initiative being halted primarily on privacy grounds. While the government has pressed ahead with large-scale digital identification and payment systems, the prospect of compulsory vehicle-tracking appears to have crossed a red line for both security agencies and civil liberty advocates.
The shift to ANPR-based tolling is expected to be rolled out in phases, beginning with selected high-traffic corridors. Existing Fastag infrastructure will remain in place during the transition.
For Mr Gadkari, who has championed toll reform as a means to reduce congestion and improve revenue efficiency, the indefinite deferment of GNSS tolling represents a significant setback to one of his flagship “dream projects”.
