Indian Highways Management Company Limited (IHMCL), an NHAI promoted company and Axis Bank have signed an agreement for the provision of Central Clearing House (CCH) services and sale of FASTag, for the Electronic Toll Collection (ETC) at the Toll Plazas on the National Highways.
ETC enables road users to pay highway tolls electronically without stopping at the toll plazas. The unique number of the RFID FASTag affixed on the wind shield of the vehicle will be read by the readers fitted in the dedicated "ETC" lanes of plazas and the toll will be deducted automatically. This will help in reducing congestion at the toll plazas and enable seamless movement of vehicles on the national highways.
Earlier this year, IHMCL had signed CCH Service Provider Agreement with the ICICI bank also. IHMCL now has two banks viz ICICI and Axis Bank to perform clearing and settlement of electronic toll transaction, which is a key requirement for interoperable electronic toll collection. Considering the complexities and geographical spread, the nationwide ETC would be first of its kind in the whole world.
Electronic Toll Collection system on Delhi - Mumbai stretch of the national highways will be made operational by the end of this month and a nationwide rollout will be carried out by the end of year.