RFID Tolling-Impact and Challenges

Manoj Dave

Among the available technologies for ETC, RFID is the cheapest and is thus quite suited for the Indian environment. Though there are no disadvantages apparent in the RFID system there are definitely hurdles in its smooth implementation. First is the way our transport infrastructure and industry functions. The vehicle owners give money to the drivers for fuel as well as toll. They have to manage within the given amount, and any savings accrued, goes to the driver. Therefore one question is why the driver, or the owner for that matter would, install an RFID tag on the vehicle, which will take away the incentive to the driver? The second point is that unless the system is implemented uniformly throughout the country, or at least on one whole complete route, e.g. Mumbai – Delhi route, it would not be very attractive for the vehicle owners to provide cash for some sectors and at the same time put money in the RFID tags. Secondly, for any pre-paid service, the fleet owners expect some discount, but currently there is no such provision for discount. The concessionaire will not offer this because for him it does not make any difference if the toll is paid in cash or through RFID tags. The success of RFID ETC depends on the penetration level of this system. Unless about 30-35% of the traffic adopts this tolling, the fleet owners will not get any advantage because the cash based tolling would be still in operation.

Internationally, it takes about 5-7 years to reach a desired penetration level of about 30-35% on the national highways. In India, we have a unique situation where almost 50% of toll plazas are managed by NHAI. Now the concessionaries who operate toll plazas may be quite willing to adopt the technology because they are dealing with private company –to-company transactions. But in the case of NHAI, toll plazas are given on contract to various people such as ex-servicemen and OMT operators. The question is whether they would be interested in investing in technology and accepting this as a major change? Also, how much time would be required for the system to be implemented in all the toll plazas? Out of the 250+ toll plazas in the country, about 110-115 are operated by the NHAI. Most of the plazas do not even have an Automatic Vehicle Classification (AVC) system.

To me, setting up ETC is a process, and we are slightly ahead of our time at present in implementing ETC. There has to be a more structured approach. First , the focus should be on getting right the basics of the tolling at the toll plazas in terms of aspects such as setting up the toll equipment, AVC system etc. Since on NHAI toll plazas, even the first step is not properly implemented, moving to the second step will be that much more difficult. For our part, L&T has been trying to contribute as much as possible in helping NHAI in the technology selection and in the ETC implementation process. Also, on our part, as a leading developer, we are committed to ETC implementation, irrespective of the level of penetration of the technology. But all concessionaries may not have this approach.

To remedy the situation, first, the infrastructure at the toll plazas which will be implementing ETC should be upgraded. Once that is done and then, having already selected a CTS operator, the IT infrastructure should be in place, to ensure that the transactions have enough bandwidth and go smoothly. One of the steps the government has taken is that all the vehicles that are being manufactured from last October have an RFID tag on them. The government can communicate with the transport operators and urge them to move towards RFID tolling and provide any concessions or other incentives that may be required to promote faster penetration of RFID tolling. The government has to do this since the concessionaires are not in a position to do this.

Unless about 30-35% of the traffic adopts this tolling, the fleet owners will not get any advantage because the cash based tolling would be still in operation.

The potential and future for RFID technology looks very bright – no stoppages at the toll plazas – there would be savings in vehicle operating costs, time, fuel costs etc. Further, the Central Clearing House operator should handle problems carefully – any exceptions, ambiguities etc raised by users should be attended to promptly and efficiently; money transactions should be completed within the prescribed time limit of 24 hours. The efficiency of the operator would give credence and impetus for the adaptation of RFID and he should really take this upon himself to ensure the success of the technology.

L&T has worked very closely in putting the pilot phase of this project in place. The company would continue to participate in any way it can in technology upgrades and other infrastructure improvements based on technology in the project.