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The National Electronic Toll Collection (NETC) program, developed by the National Payments Corporation of India (NPCI), has introduced a highly efficient and interoperable solution for electronic toll payments across India. This initiative, commonly known as FASTag, is designed to simplify and expedite toll transactions, significantly enhancing the travel experience for motorists. It enables vehicles to pass through toll plazas without stopping and manually paying toll charges, facilitating cashless transactions using Radio Frequency Identification (RFID) technology. The core objective of the NETC system is to create a nationwide framework where FASTag users can pay tolls at any toll plaza in India, irrespective of which bank issued their FASTag or which bank manages the toll plaza.
In November 2016, the FASTag system was in its infancy, with only 3 banks participating, zero transaction data and just over 100,000 tags issued. However, the growth that followed was nothing short of exponential. In March 2024, the number of participating banks increased to 39, and the number of issued tags skyrocketed to over 88 million, representing an astounding growth at a CAGR of over 145% in tag issuance over this period. The transaction volume and value showed an even more impressive trajectory. From a modest 3.19 million transactions valued at 88.12 crores in December 2016, the system processed 338.73 million transactions worth 5,938.86 crores in March 2024. This represents a compound annual growth rate (CAGR) of 86% for transaction volume and 75% for transaction value over approximately 7.5 years.
The initial phase from 2016 to 2019 showed steady but relatively slow growth as the system was being established and adopted. A significant acceleration occurred in late 2019, likely corresponding to an increased government push for FASTag adoption. The number of tags issued more than doubled from about 57 million in August 2019 to 116 million by December 2019. The COVID-19 pandemic had a noticeable impact on the system’s usage. April 2020 saw a sharp drop in transactions, with only 10.26 million transactions worth 247.58 crores, reflecting the nationwide lockdown and travel restrictions. However, the recovery was swift as in July 2020, transaction volumes surpassed the pre-pandemic levels. Post-2020, the growth remained consistently strong. The number of participating banks stabilized around 35-39, suggesting the system had achieved widespread coverage across major financial institutions. Tag issuance continued to grow steadily, crossing the 500 million mark in April 2022 and approaching 900 million by March 2024. Transaction values and volumes have also grown remarkably over this time, with some seasonal variations apparent. Since early 2023, more than 300 million transactions valued ₹ 5,000 crores have been processed monthly through the system. This suggests that the highway transport ecosystem in India now depends heavily on FASTag. It is also noteworthy that the average transaction value has increased. Between 2016 and 2017, the average transaction value was between 275 and 300 rupees. The fact that this had somewhat dropped to around 175 rupees per transaction by 2024 may have been due to a rise in shorter journeys or a wider variety of toll stations.
In conclusion, the NETC FASTag statistics from 2016 to 2024 demonstrate a successful digital transformation in India’s highway toll collection system. From a nascent technology to an essential part of road infrastructure, FASTag has shown consistent growth in adoption and usage. This shift indicates improved efficiency in toll collection and significant benefits in terms of reduced traffic congestion, improved fuel efficiency, and enhanced transparency in road usage payments. As the system matures, it may pave the way for more innovative applications in traffic management and road infrastructure development.
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