NEW DELHI: Paytm will operate toll booths that will enable vehicles to zip through toll plazas as their toll charges will be deducted from their digital wallets.Raghav Chandra, chairman for the National Highways Authority of India ( NHAI ), confirmed Paytm has won contracts for automatic toll collections at highways in various states.“We have awarded them 40 out of 350," Chandra said.Paytm did not respond to an emailed questionnaire sent on November 7.After its digital wallet and ecommerce businesses, Paytm is now eyeing large public-private partnership market in India. Apart from the NHAI contracts, the Noida-based technology firm is also in talks with the Railways for digitising payments mechanisms.Paytm has secured the contracts as part of the government’s plans to let digital wallet companies manage its electronic toll service. Such electronically managed tolls are aimed at saving time at toll gates and to smoothen the overall process that were till recently managed by manned booths collecting money at gates leading to traffic snarls.In April, the NHAI launched its e-tolling service at about 300 toll plazas across the country that allowed vehicles with FASTag cards, introduced by the highway authority earlier, to pass toll plazas without having to stop.In a bid to encourage passers to use digital wallets, NHAI is offering 10% discounts on payment through digital modes. Various branches of SBI, ICICI Bank and Axis Bank are selling tags for use on such e-tolling gates.Banks issuing such tags will receive 1.5% of the electronic toll revenue every time a vehicle pays using such tags. On the other hand, Paytm officials have approached Railways to propose a host of services, including allowing passengers to use Paytm to pay for services like purchasing tickets, snacks at the railway stalls and parking fees, among others.Railways Minister Suresh Prabhu confirmed that there was a proposal from Paytm for unreserved railway tickets to be sold through the app. However, no decision has been taken on Paytm proposal.