Maharashtra to Introduce AI-Driven Toll Collection System to Ease Mumbai Traffic

In partnership with

Don’t get SaaD. Get Rippling.

Remember when software made business simpler?

Today, the average company runs 100+ apps—each with its own logins, data, and headaches. HR can’t find employee info. IT fights security blind spots. Finance reconciles numbers instead of planning growth.

Our State of Software Sprawl report reveals the true cost of “Software as a Disservice” (SaaD)—and how much time, money, and sanity it’s draining from your teams.

Read the full report and see how your company stacks up→

The future of work is unified. Don’t get SaaD. Get Rippling.

Stop SaaD in its tracks

Mumbai, one of India’s busiest metropolitan cities, has long struggled with severe traffic congestion—particularly at toll plazas like Dahisar, which serve as major entry and exit points between Mumbai and the northern suburbs. To address this persistent problem, Maharashtra’s Transport Minister Pratap Sarnaik has proposed an AI-driven toll collection system designed to minimize traffic jams, cut pollution, and improve road efficiency.

The proposal marks a significant step towards modernizing urban transport infrastructure through artificial intelligence, automation, and data analytics.

The Vision Behind the AI Toll System

At the heart of this initiative lies the ambition to create seamless and contactless toll collection. Under the proposed system, traditional toll booths where vehicles stop to pay charges will be replaced by AI-enabled automatic detection points. These points will be equipped with smart cameras, number plate recognition sensors, and digital payment integration, allowing vehicles to pass without stopping.

The system will identify the vehicle, link it to its digital payment source—such as FASTag, e-wallets, or bank accounts—and automatically deduct the toll amount. This will not only reduce waiting times but also prevent human error and corruption associated with manual collection.

The AI-based framework will further analyze real-time traffic data, enabling authorities to monitor traffic flow, identify congestion hotspots, and make quick decisions to improve mobility.

Why Mumbai Needs This System

The Dahisar toll plaza on Mumbai’s northern corridor is infamous for long queues and gridlocks, especially during peak hours. Thousands of vehicles pass through the stretch daily, causing severe delays for ambulances, school buses, and emergency vehicles. Apart from lost time, these jams contribute heavily to air and noise pollution.

According to the Minister, these recurring issues demand a modern, technology-driven solution that not only improves traffic efficiency but also supports the state’s environmental and sustainability goals. By eliminating frequent halts at toll plazas, vehicles will move smoothly, reducing idling time, fuel consumption, and carbon emissions.

Key Features of the Proposed AI Toll Collection System

The Maharashtra government’s proposed system incorporates several advanced features:

1. Automatic Vehicle Identification:
   AI cameras will instantly read number plates using Optical Character Recognition (OCR) and match them with a centralized database.

2. Real-Time Payment Integration:
   Once identified, the system will automatically deduct the toll amount through FASTag or linked bank accounts, ensuring zero human involvement.

3. Smart Traffic Monitoring:
   AI analytics will provide continuous traffic updates, helping authorities to divert vehicles or adjust lanes dynamically during rush hours.

4. Dual Toll Payment Capability:
   A unique feature under consideration is the ability to pay for two consecutive tolls at once. This will reduce the need for vehicles to stop multiple times within a short distance.

5. Enhanced Security and Transparency:
   Since all transactions and vehicle records will be digitally logged, the chances of toll fraud or data manipulation will be significantly minimized.

Government’s Broader Objective

The AI toll collection plan is part of a larger digital transformation agenda in Maharashtra’s transport network. Authorities believe that intelligent systems like this can help develop “Smart Mobility Corridors”, integrating AI, IoT sensors, and GPS-based monitoring tools.

The government also aims to coordinate with the National Highways Authority of India (NHAI) and private toll operators to ensure the system’s smooth rollout. However, it remains in the proposal stage, with feasibility studies and pilot trials expected to begin at Dahisar soon.

Expected Benefits

The introduction of an AI-based toll collection system could reshape Mumbai’s road experience in multiple ways:

• Reduced Congestion: Continuous vehicle movement will significantly ease choke points, especially during morning and evening rush hours.

• Lower Emissions: By minimizing vehicle idling and unnecessary halts, fuel consumption and pollution levels will drop.

• Time Savings: Commuters will save several minutes on each trip, contributing to higher productivity.

• Operational Efficiency: Automation will reduce manpower requirements and administrative costs.

• Improved Transparency: A data-driven digital system minimizes leakages, making toll management more accountable.

Furthermore, the use of AI will help predict traffic patterns and optimize infrastructure planning in the future.

Challenges Ahead

Despite its promise, implementing an AI-driven toll system in a densely populated city like Mumbai presents several challenges. First, technical readiness—including camera accuracy under varying weather and lighting conditions—will be crucial. Second, data security and privacy protection must be ensured since millions of vehicle records will be digitally stored and analyzed.

Another potential issue is public acceptance. Drivers and operators will need time to adapt to the new system, especially those still dependent on cash or outdated payment methods. Maintenance and calibration of AI sensors and cameras will also demand regular technical support.

Additionally, some residents and local groups had earlier opposed relocating the toll plaza due to land concerns. The AI toll project, therefore, offers a middle-ground solution—modernizing operations without shifting existing sites. Yet, coordination between multiple agencies—NHAI, the police, and private contractors—will determine how quickly and smoothly the system is implemented.

Environmental and Economic Impact

Mumbai’s air quality regularly dips due to emissions from stalled vehicles, particularly around choke points like Dahisar. If the AI system succeeds in maintaining uninterrupted traffic flow, experts believe it could lead to a measurable improvement in urban air quality. Fewer stops also mean reduced wear and tear on vehicles, saving fuel and maintenance costs for drivers.

Economically, the system could serve as a model for other cities such as Pune, Nagpur, and Nashik, potentially creating new opportunities for AI startups, hardware providers, and data analytics firms in Maharashtra’s growing tech ecosystem.

A Step Toward the Future

The AI-driven toll collection proposal reflects India’s broader shift toward smart infrastructure and AI-enabled governance. With urban populations expanding and vehicle density rising, traditional toll systems have reached their limits. Maharashtra’s experiment could redefine how Indian cities manage transport, blending innovation with public convenience.