Private banks fail FASTags toll scheme, PSUs in fray

NEW DELHI: Smart tags fitted in vehicles, FASTags, were supposed to ensure a smooth flow of traffic through toll plazas across national highways.
But so far, just over 2,200 tags have been sold despite the programme being steered by two major private banks. Upset with the poor progress, the road transport ministry is likely to cancel the contracts and give the task to PSU banks.

Sources said the two banks -ICICI and Axis Bank -that had partnered with the ministry last October to manage the scheme across the country informed the government last month that the business was unviable for them. Considering the mammoth task of making a single tag interoperable across 300-odd toll plazas in the country and for a faster roll-out of the scheme, NHAI had set up a dedicated company, Indian Highways Management Company Limited (IHMCL), for the purpose.

The banks had promised higher margins to IHMCL, which has become unsustainable for them. Meanwhile, sources said that major progress has been made as far as installing the system is concerned. Installation of both hardware and software at over 200 of nearly 300 toll plazas has been completed and the system integration is progressing well.