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The FASTag monthly toll transaction hit an all-time high of 285.83 million in November, beating by a whisker the previous high of 285.37 million reported in May this year.
The monthly volume saw a decline during June and July but bounced back in August. However, in September it dropped only to pick up in October and November, according to National Payments Corporation of India (NPCI) data.
On a year-on-year basis, the volume grew by 33 per cent to 285.83 million as against 214 million in the same period last year.
Critical for monetisation
FASTag toll collections jumped around 46 per cent y-o-y on a daily average basis in November taking the total FASTag toll collections to ₹4,646 crore as against ₹3,177 crore a year ago. Improved collection is critical for companies looking to monetise their existing toll assets, says a report by Motilal Oswal Investment Services.
After decent collections in October, the collections improved substantially in November. Freight carriers constitute around 85 per cent of the toll collections on highways.
Jagannarayan Padmanabhan, Director at CRISIL Ltd, said the volume metric under FASTag toll transaction has been averaging at about 286 million but the corresponding collection in value has seen a steady increase over the last six months.
Commenting on the increasing toll transactions Bal Malkit Singh, a Mumbai-based truck operator and former President All India Motor Transport Congress, said, “This vindicates our stand about the acute leakages in toll revenue in the erstwhile toll collection methodology.”
While things have improved after Electronic Toll Collection, there is still manipulation and leakage but not at that scale.
In many places RFID readers do not work and toll is charged in cash. This could be checked by GPS-based tolling system which is tech-driven, human interference free, indirect taxation like additional cess on fuel or any other methodology like annual toll permit etc. Physical barriers and human presence on roads and toll plazas has to be shunned, he said.
Alternative toll collection
The collection could be enhanced with alternative toll collection methodologies such as indirect taxation which involves additional cess on diesel and petrol, additional permit fees and allowing seamless, toll barrier and human interference free movement of vehicles that will enhance revenue, save environment and cut logistics costs and diesel consumption considerably, he said.
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