NHAI Starts AI Toll Booths, Without Barriers: Rs 7000 Crore To Be Saved


Mohul Ghosh

Mohul Ghosh

May 13, 2026


India’s highway infrastructure is entering a major technological transformation with the rollout of the country’s new AI-powered Multi-Lane Free Flow (MLFF) tolling system. The pilot project aims to eliminate traditional toll booths entirely and replace them with fully automated, barrier-less toll collection.

Under the MLFF system, vehicles no longer need to stop or slow down at toll plazas. Instead, overhead gantries equipped with AI cameras, FASTag readers, and advanced sensors automatically identify vehicles and deduct toll charges in real time.

The technology has already gone live at:

  • Surat-Bharuch stretch on NH-48 in Gujarat
  • Delhi’s Urban Extension Road-II (UER-II) corridor
  • Pilot installations in Rajasthan and Telangana

How The AI-Powered Toll System Works

The MLFF infrastructure combines multiple advanced technologies to create a no-stop tolling experience.

The system uses:

  • FASTag RFID scanners
  • Automatic Number Plate Recognition (ANPR) cameras
  • LiDAR-based vehicle detection systems
  • AI-powered vehicle classification tools
  • Edge computing for real-time toll processing

As vehicles move under the gantry at highway speeds:

  1. FASTag scanners identify the vehicle
  2. AI cameras capture the registration number
  3. LiDAR sensors determine vehicle size and category
  4. The backend system instantly deducts the toll amount

Even vehicles without valid FASTags can still be identified through ANPR cameras and later issued electronic payment notices.

Why India Wants To Remove Toll Booths

Traditional toll plazas have long been blamed for:

  • Massive traffic congestion
  • Fuel wastage
  • Long waiting times
  • Higher logistics costs
  • Increased pollution

Even after FASTag implementation, vehicles still need to slow down at toll plazas, creating bottlenecks on busy highways.

The government now estimates that nationwide barrier-less tolling could:

  • Save ₹6,000-7,000 crore annually
  • Reduce toll collection costs from 12-15% to just 3-4%
  • Save ₹295 crore worth of fuel every year
  • Reduce 81,000 tonnes of CO₂ emissions annually

According to Nitin Gadkari, once all 700 toll plazas become barrier-less, India’s highway efficiency could improve dramatically.

India Is Moving Toward Intelligent Highways

The MLFF rollout is also part of India’s broader push toward smart and connected transportation infrastructure.

Experts say the system lays the foundation for:

  • GNSS satellite-based tolling
  • Vehicle-to-Infrastructure (V2I) communication
  • AI-powered traffic management
  • Real-time highway monitoring

Future versions may eventually charge drivers based on:

  • Actual distance travelled
  • Dynamic congestion pricing
  • Real-time traffic conditions

Instead of fixed toll plaza points.

What Happens If Payment Fails?

If a FASTag account has insufficient balance or fails to process payment:

  • The system generates an electronic notice
  • Vehicle owners receive a limited payment window
  • Penalties may apply after the deadline expires

According to NHAI data, nearly 50% of motorists receiving e-notices under the first MLFF pilot already cleared their dues voluntarily, helping authorities recover around ₹30 lakh quickly.

Why This Matters For India

India’s highway network has expanded rapidly:

  • National highways increased from around 91,000 km in 2014 to over 1.46 lakh km by 2025
  • FASTag penetration now exceeds 98% with more than 8 crore users

As traffic volumes rise sharply, barrier-less tolling could become one of the biggest changes in India’s road infrastructure ecosystem.

For commuters, the promise is simple:

  • No queues
  • No stopping
  • Faster journeys
  • Lower fuel consumption

And if the pilots succeed, India may soon witness the complete disappearance of traditional toll booths from national highways.


Mohul Ghosh
Mohul Ghosh
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