MP raises toll fee and currency penalty concerns for Bhutanese vehicles in India

On 13th June 2025 during the Question-Hour session of the National Assembly, Member of Parliament (MP), Tashi Tenzin, from Radhi-Sagteng constituency raised concerns over the ongoing toll fee challenges faced by Bhutanese vehicles traveling along Indian highways, particularly in Assam and West Bengal, India.

MP Tashi Tenzin questioned the Minister for Foreign Affairs and External Trade regarding the unresolved issues surrounding double toll charges imposed on Bhutanese and 50% additional charges levied when toll fees are paid in Ngultrum.

He said that heavy Bhutanese trucks, especially those traveling from Samdrup Jongkhar to Phuentsholing via five toll plazas, are reportedly incurring toll fees as high as INR 4,440 per trip, incurring financial burden affecting loan repayments for truckers, and could negatively impact Bhutan’s trade, industry, and Indian currency reserves.

Further, he also sought an update on the government’s previous commitment made during the Second Session in response to a question from the Nganglam MP regarding consultations with Indian authorities, and efforts to resolve the matter at the earliest.

Foreign Affairs and External Trade Minister, D.N Dhungyel, acknowledged the ongoing difficulties faced by Bhutanese drivers and assured the House that the government is actively working toward a solution.

Lyonpo D.N Dhungyel said that integrating into India’s highly synchronized FASTag system involves complex cross-border coordination and data sharing.

The FASTag transaction process system is a very integrated system, incorporating the systems of different institutions, including banks and private operators. While the toll transaction happens in real time, the process entails the integration of systems of different institutions.

Lyonpo said, “We are talking of integrating into a system across international borders. Therefore, first and foremost, we need to have our systems and measures in place before integration. As the matter requires a multi-layered approach, the ministry has been leading several internal stakeholder meetings with DRC, GovTech, MoIT, RMA, and BoB to study the feasibility of our system integration with the Indian system to avail the FASTag service and resolve the challenges in payment modality.”

He shared that the relevant agencies are now more prepared in considering payment and system integration, as well as sharing customized data.

In May, two rounds of virtual meetings with the relevant Indian authorities to discuss the means and methods of implementation was conducted.

Lyonpo shared that Indian side has agreed to internally deliberate on the issue and develop a detailed approach paper for consideration.

FASTag is an electronic toll collection system, was designed to reduce traffic congestion, enhance fuel efficiency, minimize environmental impacts, and smoothen toll collection. The National Highway Authority of India (NHAI) made the FASTag mandatory in January 2021.

It is currently designed only for Indian-registered vehicles and requires an Indian bank account, SIM card, and identification documents barriers that prevent Bhutanese nationals from availing FASTag services.

Lyonpo clarified that even Indian drivers without FASTag are subject to 100% penalties on tolls when paying in cash, as a deterrent to non-compliance.

Lyonpo shared that the government remains optimistic that a trial run of a Bhutanese-adapted FASTag solution could be launched in the coming months, pending final agreements and internal system readiness.

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