A Thread. FASTag rollout has helped NHAI increase daily toll collection from Rs 65 Cr to Rs 80 Cr., a 23% jump. Over the weekend I crossed four tolls en route Chandigarh from Delhi and here’s a thread with some observations & thoughts. 1/n
1) It did not take us more than 3-min to cross any toll, definitely a significant improvement in turnaround time & great for commuters, especially commercial vehicles. (would be down further post 15th Dec)
2). The biggest benefit for tolls is plugging the cash leakage, which is
2). The biggest benefit for tolls is plugging the cash leakage, which is
evident in the overnight jump in the collection. Further, managing Rs 65 Cr. cash every day involved significant time in reconciliation, loss due to fake notes, & cash logistics - taking that cash to the bank. The digital payments completely take away all those headaches & costs.
3). Finally, this could also result in significantly lower manpower costs for the toll operators. There are 523 toll plazas of NHAI, with probably 30,000 collection jobs (average 20 lanes times 3 shifts). Wondering what happens to those jobs- perhaps that’s the cost of automation
4). Earlier a commuter had to plan to either buy one-side or return, but now if the vehicle comes back within 24 hours system will automatically deduct only the balance. For instance, the one-side toll on Gharuanda (Karnal) was Rs 125 whereas the return was Rs 185.
We came back within 24 hours and the system charged us only the balance Rs 60. Earlier some people would take a return but wouldn’t make it within 24 hours or lose the toll receipt, now that extra income for tolls is gone but is good for commuters.
5). It probably creates a significant float (non-interest bearing deposit) for banks & wallets (like Paytm) issuing FASTags, as millions of private vehicles may recharge but not travel that frequently. <End>
