Technology

After the failure of demonetization, the BJP government has come up with a new plan to phantasm for the common people of the country. Our Union Minister Nitin Gadkari, has announced that FASTags will become mandatory for all vehicles, private and commercial, from December 15,2019 (the earlier deadline was December 1) and instructed NHAI to ensure deployment of best technology for success of FASTag project.

Like demonetization, the design of this scheme also reflects their inexperience in implementing the project of FASTag. The announcement that those without the tag would be charged double the tariff at the toll gates set off a firestorm of protests on social media.

On November 29, 2019, Minister for Road Transport and Highways Nitin Gadkari announced that the scheme would come into force only on December 15.

What is Fastag ?

FASTag is a radio-frequency identification tag, affixed on vehicle’s windscreen, which enables automatic deduction of toll charges from prepaid account linked to it without stopping for cash transaction.

The BJP government along with NHAI officials are advertising the colorful side of implementation of FASTag in the country i.e the advantages of FASTag.

Some of advantages of Fastag are as under:

• Cashless Payments – FASTag users don’t need to carry cash for toll transactions, and don’t need to worry about collecting the exact change.
• Faster Transit – Auto-debit of exact amount through the FASTag allows for faster transit through the toll plazas and saves the time of the users.
• Online Recharge – FASTag can be recharged online through Credit Card / Debit Card / NEFT/ RTGS or Net banking.
• SMS alerts – Users can receive instant SMS alerts on a registered mobile number for toll transactions, low balance, etc.
• Validity – A FASTag would be functional for a period of 5 years.

Inspite of having some advantages of FASTag implementation, there are some disadvantages also which can affect the life of the common people of the country.

Disadvantages of Fastag are as under:

• People who rarely travel on highways have to bear the purchase cost and security deposit of Fastag.
• As unemployment is a major challenge for the government in present days, after the implementation of FASTag – lots of young boys & girls working on tolls might lose their jobs.
• The banks are the biggest gainers from this. The issuer as well as the acquirer bank together account for a whopping 2.75 per cent of the value of every payment made by road users.
• The Merchant Discount Rate on FASTags stands at 4 per cent, far above the rates for credit and debit card transactions

The real motive of the government in the implementation of the FASTag scheme appears to be elsewhere. By implementing the FASTag, government is trying to hide its failure to bring the notoriously dodgy toll operators to clear their dues.

Indian highway projects have been known to be utterly non-transparent, especially when they were implemented in the public private partnership (PPP) mode; the notorious case of the IL&FS, which can only be described as the Mother of all PPPs, illustrates the utter opacity of their operations.

The government’s inability to control cost-padding by private builders, and therefore tariffs based on such costs, is what has resulted in the sharp escalation in toll charges across the country in recent years.

Meanwhile, the banks, which were supposed to ensure that toll operators put their revenues in escrow accounts so that the financial institutions rightfully enjoyed first charge on revenues from projects, found revenues leaking, obviously because cash collections were not being deposited in the designated accounts.

The FASTag is supposed to plug this loophole. To justify the tag on these grounds is a far cry from making lofty claims about how it is meant for the benefit of the humble user.