NHAI Signs Agreement for India’s First Multi-Lane Free Flow Tolling System in Gujarat

Indian Highways Management Company Limited (IHMCL) has signed an agreement with ICICI Bank to implement the country’s first comprehensive Multi-Lane Free Flow (MLFF) tolling system at Choragi Fee Plaza in Gujarat. The agreement marks a major step towards barrier-free tolling, enabling seamless Electronic Toll Collection through FASTag. NHAI plans to roll out MLFF at around 25 National Highway fee plazas during the current financial year. The system uses high-performance RFID Readers and ANPR Cameras to read FASTag and Vehicle Registration Number (VRN), enabling seamless toll collection without stopping vehicles at fee plazas. The National Highways Authority of India (NHAI) has once again taken a historic step toward modernizing the country’s road infrastructure with

The announcement of India’s first Multi-Lane Free Flow (MLFF) tolling system in Gujarat This agreement marks a turning point in the way tolls will be collected on national highways, introducing a technology-driven solution that eliminates traditional bottlenecks and offers seamless, barrier-free movement to commuters. By deploying the MLFF system, NHAI aims to bring India closer to global standards in highway management and enhance the overall efficiency of road transport. Gujarat, already known for its rapid infrastructure development, becomes the testing ground for this pioneering initiative, setting a benchmark for the rest of the country. The agreement aligns with the broader vision of the Government of India to integrate digital technology, efficiency, and transparency into its infrastructure projects

The Multi-Lane Free Flow system works on the principle of barrier-free tolling, which means vehicles can pass through toll plazas at highway speeds without stopping for manual payment. Using advanced technologies such as automatic number plate recognition (ANPR), RFID, and global positioning systems (GPS), the toll is deducted directly from the user’s account or linked FASTag wallet. This not only reduces travel time but also brings in multiple benefits such as lowering fuel consumption, cutting carbon emissions, and minimizing traffic congestion at toll plazas. In a state like Gujarat, which is a hub of trade and logistics with highways connecting ports, industrial zones, and major cities, the MLFF tolling system will significantly boost the efficiency of freight and passenger transport.

By adopting this system, India joins the ranks of countries like the United States, Singapore, and European nations where free flow tolling has already been a norm One of the primary reasons behind introducing MLFF tolling in Gujarat is the state’s strategic importance. Gujarat is home to several industrial corridors, special economic zones, and ports such as Mundra, Kandla, and Hazira. With the movement of heavy vehicles being a constant activity, traffic congestion at toll plazas has often been a challenge. The new system ensures a smooth passage for commercial vehicles, thereby saving millions of man-hours annually and reducing logistical costs.

This initiative will not only improve trade competitiveness but also contribute to the larger vision of developing Gujarat as a global logistics hub. It also complements the expansion of the (Highways Industrial) which passes through Gujarat, and highlights how modern tolling solutions can boost economic activities by reducing unnecessary delays. The NHAI’s agreement also places emphasis on data-driven governance. With the MLFF system, highway authorities will have real-time access to traffic data, toll collection patterns, and vehicle movement statistics. This data will be invaluable for improving highway planning, maintenance schedules, and safety strategies. For instance, the system can provide insights into peak traffic hours, the proportion of commercial versus private vehicles, and even track compliance with speed limits.

In addition, transparent digital tolling helps in curbing revenue leakage, a concern that has existed in the traditional tolling framework. This data-centric approach resonates with the government’s initiative, which seeks to leverage technology for efficiency and accountability in governance. A significant aspect of introducing MLFF in India is its impact on the environment. Every day, thousands of vehicles waste fuel idling at toll plazas, leading to unnecessary carbon emissions. By adopting free flow tolling, this wastage will be drastically reduced. According to transport experts, the MLFF system could cut down vehicle emissions by nearly 20-25% in tolling zones, directly contributing to India’s climate goals under the (World Bank Groups) and domestic commitments like.

The Furthermore, by improving highway efficiency, the system will encourage smoother adoption of electric vehicles (EVs) for long-distance transport, as reduced congestion will improve EV battery optimization The financial and technological collaboration for this project also deserves attention. The agreement involves partnerships with international and domestic technology providers, bringing advanced expertise in tolling and traffic management. By adopting global best practices, NHAI ensures that India is not just modernizing its infrastructure but also building technical know-how for the future. Similar collaborations have earlier been seen in India’s metro projects and smart city missions, and the MLFF tolling initiative is another example of how international cooperation accelerates.

Domestic growth. For road users, this means they will be part of a highway ecosystem that is at par with developed nations, while for the government, it ensures optimized revenue collection and enhanced infrastructure sustainability. Public convenience is another major focus area of the project. Under the MLFF system, users will not have to carry cash or worry about transaction delays at toll plazas. Integrated payment solutions through FASTag, UPI, debit/credit cards, and other digital wallets will make tolling hassle-free. Even in cases of technical glitches, the system will be equipped with redundancies like camera-based number plate recognition and backend support teams to ensure smooth functioning. In rural and semi-urban areas of Gujarat, where digital literacy is still growing.

Awareness campaigns will be launched to educate drivers and fleet operators about the new tolling process. This ensures inclusivity and helps prevent disruptions during the transition phase The implementation of India’s first MLFF tolling system also ties into the government’s long-term vision of making Indian highways future-ready. Over the past decade, NHAI has introduced several innovations such as electronic toll collection through FASTag, highway e-surveillance systems, and real-time traffic monitoring. The MLFF system is the next logical step in this journey, pushing India toward a cashless, technology-driven transportation network. It also opens up possibilities for integrating highways with smart city ecosystems, where urban traffic and intercity.

Road transport can be managed in a synchronized manner. For instance, traffic flow data from highways can be shared with city traffic management systems, helping urban planners reduce congestion and improve mobility solutions From an economic perspective, the launch of MLFF tolling in Gujarat is expected to generate new business opportunities in the fields of technology, infrastructure, and logistics. The demand for high-tech cameras, sensors, data analytics tools, and software solutions will open up new markets for domestic startups and established players. Additionally, smoother logistics will attract more investments in the state, particularly in export-driven sectors like textiles, chemicals, and engineering goods. For the common citizen, the immediate benefit will be faster travel.

Reduced fuel costs, and a more comfortable driving experience. In the long run, however, the multiplier effect on trade and industrial productivity will be far more significant, contributing to GDP growth and positioning India as a leader in infrastructure modernization As Gujarat prepares to witness the rollout of this landmark project, the rest of India is watching closely. If successful, the MLFF system will soon be replicated across other high-traffic states such as Maharashtra, Tamil Nadu, and Uttar Pradesh. This scalability is critical to ensuring that India’s vast network of highways keeps pace with rising economic activity and increasing vehicle ownership. The NHAI’s decision to choose Gujarat as the first state for

MLFF tolling is a calculated move, given its readiness in terms of infrastructure, governance, and economic importance Over time, the lessons learned from this implementation will shape policies and standards for nationwide adoption the signing of the agreement for India’s first Multi-Lane Free Flow tolling system in Gujarat is not just a technological upgrade it is a transformational milestone in India’s infrastructure journey. It represents efficiency, transparency, environmental responsibility, and global competitiveness, all rolled into one. For NHAI, this project cements its role as a forward-looking agency committed to innovation, while for India, it sets the foundation for a future where highways are smart, seamless, and sustainable.