Government of India has made FASTag mandatory to allow users avail any discount at the highway toll plazas across the country. The decision has been taken to promote digital mode of payment and ensure seamless travel on the National Highways.
Daily Current Affairs Quiz 2020
Key-Points
The ministry of Road transport and highways amended the National Highways Fee Rules, 2008 to allow discount for users making a return journey within 24 hours and other local exemptions only in cases where vehicle carries a valid functional FASTag.
The tag is valid for five years and comes in seven different colours — violet, orange, yellow, green, pink, blue, black. Each colour is assigned to a particular category of vehicles.
To encourage the use of FASTags, the National Highway Authority of India (NHAI) refunds 5% of the total monthly transactions.
Indian Highways Management Company Limited (IHMCL) (a company incorporated by National Highways Authority of India) and National Payment Corporation of India (NPCI) are implementing this program.
Benefits of FASTags:
- Ease of payment: No need to carry cash for the toll transactions, saves time.
- Lower fuel cost: Near non-stop movement of vehicles leading to lower fuel cost.
- Environmental benefit: Reduced air pollution, reduced use of paper.
- Social benefit: Reduced toll payment hassles, analytics for better highway management.
- Economic benefit: Reduced effort in management at toll plaza, reduced effort in monitoring centrally.
