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Electronic Toll Collection to Save 
10 billion Annually
By siliconindia
The National Highways Authority of India proposes to replace manual toll collection at highway toll plazas with Electronic toll Collection (ETC), which is an automated collection system. CRISIL Research expects this changeover to eliminate waiting time of vehicles and save fuel worth 
10 billion per year. The savings will far outweigh the initial cost of 100 per vehicle that the system requires from vehicle owners.
The ETC system is based on radio frequency identification (RFID), which also comprises an on-board wireless unit (OBU) fitted into a vehicle and a stationary roadside unit (RSU) placed at the toll plaza. The RSU can sense the vehicle even at 50 kmph and deduct toll from the owner's pre-paid toll account with central clearing house. The system also can detect defaults in toll collection which occur due to insufficient funds in a toll account or a faulty OBU. These equipments can activate an alarm to inform authorities, without stopping the flow in traffic.
"Apart from reducing fuel wastage, the ETC system can plug leakages in toll collection. Toll Leakages occur when a vehicle does not pay the requisite toll or when booth operators Under-report collections. Based on the current industry estimate of about 10 per cent leakage, Annual losses for road developers are estimated to be approximately 12 billion. An automated tolling system can effectively address this area of grave concern for road developers and lenders with exposure to road projects," said Prasad Koparkar, Head, CRISIL Research.
10 billion per year. The savings will far outweigh the initial cost of 100 per vehicle that the system requires from vehicle owners.
The ETC system is based on radio frequency identification (RFID), which also comprises an on-board wireless unit (OBU) fitted into a vehicle and a stationary roadside unit (RSU) placed at the toll plaza. The RSU can sense the vehicle even at 50 kmph and deduct toll from the owner's pre-paid toll account with central clearing house. The system also can detect defaults in toll collection which occur due to insufficient funds in a toll account or a faulty OBU. These equipments can activate an alarm to inform authorities, without stopping the flow in traffic.
"Apart from reducing fuel wastage, the ETC system can plug leakages in toll collection. Toll Leakages occur when a vehicle does not pay the requisite toll or when booth operators Under-report collections. Based on the current industry estimate of about 10 per cent leakage, Annual losses for road developers are estimated to be approximately 12 billion. An automated tolling system can effectively address this area of grave concern for road developers and lenders with exposure to road projects," said Prasad Koparkar, Head, CRISIL Research.