Business News
3 min read | Updated on May 27, 2025, 19:27 IST
SUMMARY
A new policy under consideration with the central government could introduce an annual toll pass for ₹3,000, offering unlimited access to all national highways, state highways and expressways. The previous proposal of a ₹30,000-lifetime FASTag pass has been scrapped to launch an enhanced model for users.
This barrier-free tolling technology would enable cars to drive through toll zones without the need to halt and pay
The Ministry of Road Transport and Highways (MoRTH) is reportedly planning to launch an annual pass system for toll collection from private vehicle owners. This new system is expected to make highway travel cost-effective and smooth for frequent travelers.
According to media reports, commuters would be able to opt for an annual pass worth ₹3,000 for unlimited travel in a year, eliminating the need for recurring toll payments. Currently, individuals have to pay per journey, based on distance and vehicles. If the new system is implemented, travelers would be able to opt for an annual pass, reducing overall cost as well as traffic congestion on the roads, along with promoting digital payments.
The new plan could introduce a single payment per year system, a Times of India report said on Tuesday, May 27. Users will have two options to choose from if the new system comes into effect.
Under this, commuters can pay ₹3,000 for an annual pass and enjoy unlimited access to highway travel. Users would be able to have unrestricted access to all national highways, state highways and expressways. This will eliminate the need to reload the FASTag accounts and monitor individual toll deductions with each trip.
While the annual pass could be beneficial for frequent travelers and individuals who use highways heavily, there is also a distance-based system in which one can pay ₹50 for every 100 km they travel.
The government is considering launching a completely barrier-free tolling system in which commuters won’t have to stop at physical toll barriers on highways to pay tolls but automatic deductions would take place with the use of sensor-based systems.
This barrier-free tolling technology would enable cars to drive through toll zones without the need to halt and pay. This system could possibly be implemented with the help of automatic number plate recognition (ANPR), satellite-based location, or GPS-enabled technology.
The annual pass can make the experience smoother for car owners, without the need for individuals using FASTag to provide any additional documents or update their accounts to use the new system. The existing FASTag users would be integrated into the system without creating any confusion. The new system is expected to work seamlessly with the current FASTag system and existing accounts, making the transformation easier, the TOI report noted.
The earlier proposal of a ₹30,000-lifetime FASTag pass has been done away with to introduce more user-friendly models, the report added.
The new system has not been announced officially by the government. While reports suggest that it could be advanced and transformative, there hasn’t been any policy announcement by the centre. The new plan is still under consideration and many other reforms are being considered by the government to make the toll system better.
By signing up you agree to Upstox’s Terms & Conditions
About The Author
Next Story
By signing up you agree to Upstox’s Terms & Conditions