The ₹3,000 pass, valid for one year from activation or up to 200 trips, is exclusively for non-commercial private vehicles such as cars, jeeps, and vans travelling on the country’s national highways.
India is set to launch a FASTag-based annual pass from August 15 to streamline toll payments and facilitate seamless movement of non-commercial private vehicles, the Ministry of Road Transport & Highways (MoRTH) announced on Wednesday.
The pass, designed exclusively for private vehicles such as cars, jeeps, and vans, will be valid for one year from the date of activation or up to 200 trips, whichever comes first.
In a recorded message shared with the media, Nitin Gadkari, Union Minister for Road Transport & Highways, said, “There have been significant concerns regarding toll collection, but this government initiative brings radical relief to citizens. Currently, if you pay an average of ₹50 per toll crossing, 200 trips cost ₹10,000. However, with this pass, you can make the same number of trips for just ₹3,000, saving ₹7,000 annually.”
Introduced in 2014, FASTag is an electronic toll collection system based on radio frequency identification (RFID) technology. It reduces congestion, saves fuel, and promotes hassle-free cashless transactions on highways.
Recent complaints about FASTag include glitches at toll plazas, blacklisting confusion, and incorrect deductions.
Commuters on the Bengaluru–Mysuru highway have flagged frequent FASTag scanner failures, leading to manual toll collection and long delays. A recent circular from the National Payments Corporation of India (NPCI) caused uncertainty after introducing a rule requiring banks to resolve blacklisted FASTag accounts within 70 minutes. In FY2024, the government refunded 1.26 million faulty toll deductions, accounting for 0.03 per cent of all FASTag transactions, and imposed penalties of ₹20 million on toll agencies.
Addressing Long-Standing Concerns
The annual pass initiative seeks to resolve long-standing concerns regarding toll plazas located within a 60 km range and simplifies toll payments through a single transaction. By reducing wait times, easing congestion, and minimising disputes at toll plazas, the pass aims to deliver a faster and smoother travel experience for millions of private vehicle owners.
“The new system we are set to introduce will eliminate waiting times at toll plazas altogether,” Gadkari added.
The pass will enable seamless and cost-effective travel across national highways. A dedicated link for activation and renewal will soon be made available on the Rajmarg Yatra App and the official websites of the National Highways Authority of India (NHAI) and MoRTH.
The introduction of the annual toll pass will improve convenience for travellers by streamlining passage through toll plazas, according to Jagannarayan Padmanabhan, Senior Director and Global Head at Crisil Intelligence.
“Given that the average passenger vehicle covers approximately 10,000 km per year—most of which occurs outside national highways—the direct impact on toll operators is expected to be minimal,” Padmanabhan stated. However, the initiative brings additional benefits, including reduced congestion, improved operational efficiency, and smoother travel patterns.
“For frequent travellers who use toll roads for more than 2,500 to 3,000 km annually, the pass offers significant cost savings and added convenience, making long-distance travel more seamless.”
FASTag has seen widespread adoption across India, with over 80 million users currently utilising the system for cashless toll payments. The adoption rate stands at an impressive 98 per cent, significantly improving toll collection efficiency.
Manish Pant