GPS based toll collection in India

India is one of the countries that has toll collection as one of the biggest revenues for the government. They maintain the roads and improve the quality of the roads with the tolls collected through the toll booths. The cost differs from one place to another. Some roads are very good for drivers and some roads are not so great but are constantly being improved by the government.

Until a few years back toll collection was done through cash payment and only a few places had a facility to pay online. Later digital payments for toll collection were introduced and the fast tag was made mandatory for all vehicles. Only a few government vehicles and small vehicles were made an exception for it. There are no toll booths right now that are collecting cash only regularly. I would say this is a great innovation for India and a great way to move towards digitalization.

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Digital toll collection

Currently, the method of collecting tolls using digital payments is great. We have a fast tag wallet tagged with our vehicle and we have to recharge that wallet before our travel. When we cross the toll booth and wait for a few seconds near the sensor, the toll would be automatically deducted from the fast tag wallet. Later if we want a summary of the toll collected so far, we can take a report from the mobile application. This is how the current toll collection system works.

GPS based toll collection

This is going to be the next innovative way to collect tolls from users. Currently, even though the fast tag is one of the fastest methods to collect tolls, there can be some congestion because the collection is still manual with the help of sensors or what they call RFID. With GPS-based toll collection, the vehicle will be automatically tracked based on the positioning of the vehicle and when they travel in a toll roll, they have to pay the toll only for the distance they had covered. This way it can also be a cost-effective solution for some people and a seamless experience for others as they don't have to wait in a long queue at the toll gate. This system comes with several other advantages as well.

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Using blockchain technology in toll collection

Some countries have already adopted modern technologies like Blockchain for some of their activities. Toll collection and voting systems are the biggest use cases for blockchain. A coin can be created for toll collection and an economy can also be created around that coin with the help of cryptocurrencies and blockchain technology. People who would like to invest in our roadways can invest by purchasing the coins. Others can use the coin to purchase and make payments. The transactions will also be fully tracked so that everything stays permanently on the blockchain. This can be a public node and someone from the general public can run a node and get an incentive for running the node. All these things can be programmed as smart contracts and people who get incentives for running a node can reuse it when they travel on those roads. This way this entire system can be made decentralized and the government need not maintain servers for the same.

I read this news long back in 2020 that one of the commercial banks in South Korea has partnered with the government to create a blockchain toll collection system.


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21 comments
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This is a good start by NHAI and will save time and soon more tools will be equipped with this facility
@sagarkothari88 vote

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Yes very well said. It will definitely be a good one because people will be able to go non stop without stopping in toll booth.

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Yay! 🤗
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Blockchain integration for toll collection sounds like an interesting usecase. Only issue I see is the data privacy. With everything being on the public node, a lot of data gets exposed to common man which can be used maliciously used.

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I have an understanding that pvt blockchains in secure networks are already in use. Some companies are using it and testing it in their secure environment. The final call will all comes down to the supporting cost of the infrastructure.

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That's not a problem. With blockchain, we can encrypt to whichever level we want. The nodes can even be operated by the public. That's the beauty of blockchain.

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We have this kind of toll gate that India has but unfortunately, it was disrupted by some citizens and they got it burnt so they no longer collect money there but the usage of blockchain technology in collection money at the toll gates will make so much sense

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We have people against toll gates here too.

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On one hand, NHAI has made tremendous progress in building the digital system to bring the toll collection. But on the other, is still far from perfect. Most of the tolls are still operating offline. They download the files and store them in their local environment. the reason being remote locations and the connectivity issue.

But I am sure with the development of the infrastructure, This is doable. Although the calculation based on the Geo Coordinates is going to be a nightmare. 😂😂😂

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Yes operating offline is very bad. There are still many tolls moving black money around. Decentralizing it will be good. Yeah let's see.

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🤫
Hahaha, you are putting everything in open..
Ye sab aandar ki baat hain.

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Technology is making difference for sure, Mera Desh badal Raha hai. This is going to b every helpful. Dekho kya hota hai. 👌. Great article as always bade bhai. Good day 🙏❤️🎉

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It actually looks like daily, India seem to be setting standard on things that need to be set

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This is indeed a good decision made by the Government but I am kinda sceptical as to how this will actually work.

For example what happens to the person that needs to just cross the highway just to reach the other side of the road.

I feel like those charges should be avoided but untill it is implemented we don't really know if it would be smoothly operated or a form of chaos.

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Yeah the operational challenges will definitely be there. But I think there will be flyovers or facilities to cross the road if people want to. In South India some facilities are created for this.

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I think the GPS toll collection is actually a step to move forward much more

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