The government on Wednesday announced an annual pass that will allow private vehicles hassle-free passage through toll plazas on national highways and expressways, besides reducing the toll burden on frequent travellers.
The new way of toll payment will come into effect from August 15 this year and will function alongside the existing system for collecting user fees on highways.
The pass that will cost Rs 3,000 will be valid for one year or 200 trips whichever is earlier.
The pass can be activated on the existing FASTag and will be available only on Rajmargyatra mobile application and website of National Highways Authority of India (NHAI), a statement by Ministry of Road Transport and Highways (MoRTH) said.
At fee plazas on expressways and state highways managed by state governments or local bodies, the FASTag will operate as a regular FASTag, and applicable user fee charges may apply. Each crossing of the fee plaza counts as one trip. A round trip counts as two trips.
The annual pass will be applicable only for non-commercial private vehicles such as cars, jeeps, and vans. It will allow seamless travel across national highways without the need for repeated recharging of FASTag cards or toll payments.
“This policy addresses long-standing concerns regarding toll plazas located within a 60 km range and simplifies toll payments through a single, affordable transaction. By reducing wait times, easing congestion, and minimizing disputes at toll plazas, the Annual Pass aims to deliver a faster and smoother travel experience for millions of private vehicle owners,” minister for road transport and highways Nitin Gadkari said.
Annual toll collections of national highways are approaching Rs 60,000 crore. In 2023-24 it stood at Rs 55,882 crore.
“Given that the average passenger vehicle covers around 10,000 km per year- most of which occurs outside national highways – the direct impact on toll operators will be minimal,” senior director and global head, consulting, Crisil Intelligence Jagannarayan Padmnabhan said.
The move will reduce congestion, enhance convenience for travelers and improve operational efficiency, he said. For frequent travelers who use toll roads for more than 2500 to 3000 km annually the pass offers significant cost savings, he added.
Average daily toll collection through FASTag on national highway fee plaza is less than Rs 200 crore. Private cars account for 53% of total passages but generate just 21% of the revenue.