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Sunday, 8 November 2020

Govt proposes to make FASTag mandatory for all four wheelers from Jan 1, 2021

Govt proposes to make FASTag mandatory for all four wheelers from Jan 1, 2021

A senior government official told Mint that the government will have to amend central motor vehicle rules for making the use of FASTag mandatory

To drive faster adoption of the electronic toll collection, the union road transport and highways ministry has proposed to make FASTag mandatory in all four wheelers, effective 1 January, 2021.



A senior government official told Mint that the government will have to amend central motor vehicle rules for making the use of FASTag mandatory for all four wheelers sold before December 1, 2017. “After the rules are amended, a vehicle can be challaned if FASTag is not fitted in the car," the official explained.

Earlier, the government had made it mandatory for registration of all four-wheelers sold in India from December 2017 to be fitted with FASTags to enable automatic deduction of toll charges.

The transport ministry also plans to make FASTag mandatory for availing a new third-party vehicle insurance from 1 April, 2021. “It is being proposed that having a valid FASTag to be made mandatory while getting a new 3rd party insurance through an amendment in FORM 51 (certificate of Insurance), wherein the details of FASTag ID shall be captured," the official said, adding that the ministry has sought comments and suggestions from the stakeholders regarding these two proposals.

The government’s latest move will ensure vehicles adhere to FASTag norms.

FASTag is an electronic toll collection device fixed on the windshield of a vehicle to enable drivers zip through toll plazas without having to stop. Toll payment is directly deducted from a prepaid wallet or a bank account linked to it. The use of FASTag was made compulsory earlier this year at all national highway toll plazas to reduce cash handling and decongest national highways.

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Since then, the government has been trying to encourage the use of e-toll collection and disincentivize use of cash. Last month, it made the use FASTag mandatory for availing discounts on toll charges, including a return journey within 24 hours. It had said renewal of fitness certificate will be given only after FASTag is fitted in vehicles. For vehicles with national permit, use of the device has been mandatory since 1 October, 2019.

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