In a landmark announcement set to revolutionize highway travel for millions of private vehicle owners, Union Minister for Road Transport and Highways, Nitin Gadkari, today unveiled a new FASTag-based annual pass. This innovative scheme, priced at a highly affordable ₹3,000, promises a staggering 70% reduction in toll costs compared to regular payments, effective from August 15, 2025.
Gadkari highlighted that this “transformative step” aims to alleviate the financial burden on frequent commuters and enhance the overall travel experience on India’s National Highways. “The decision made by the government will provide great relief to the public. It will enable people to travel on a very large scale,” he stated. He elaborated that under the current system, frequent users might incur annual toll expenses of approximately ₹10,000. With the new annual pass, this cost will drastically drop to just ₹3,000.
Unpacking the Benefits: ₹15 per Trip and Massive Savings
The ₹3,000 FASTag annual pass will be valid for one year from the date of activation or for up to 200 trips, whichever milestone is reached first. This translates to an average cost of just ₹15 per toll crossing, a significant reduction from the current average of around ₹50 per trip. For regular highway users, this could mean annual savings of up to ₹7,000.
Beyond the substantial cost savings, the initiative is designed to address long-standing concerns regarding toll plazas, particularly those located within close proximity (e.g., within a 60 km range). By streamlining toll payments into a single, affordable transaction, the annual pass is expected to:
- Reduce Congestion: Minimize wait times at toll plazas, especially during peak hours and holiday seasons, leading to smoother traffic flow.
- Enhance Convenience: Eliminate the need for multiple, individual toll deductions, offering a hassle-free travel experience.
- Minimize Disputes: Reduce altercations and disagreements at toll collection points.
- Promote Seamless Travel: Encourage wider usage of National Highways by making them more accessible and economical.
Eligibility and Activation
The FASTag-based annual pass is exclusively for non-commercial private vehicles, including cars, jeeps, and vans. Commercial or freight-carrying vehicles are not eligible for this scheme.
Existing FASTag users will not need to purchase a new tag. The annual pass can be activated on their current FASTag, provided it is properly affixed to the vehicle’s windshield, linked to a valid vehicle registration number, and not blacklisted. A dedicated link for activation and renewal will soon be made available on the Rajmarg Yatra App, as well as on the official websites of the National Highways Authority of India (NHAI) and the Ministry of Road Transport and Highways (MoRTH).
Important Considerations:
- Validity: The pass is valid only on National Highways and central government-managed expressways. It will not apply to toll plazas on state highways or expressways managed by state governments or local authorities, where standard FASTag rates will continue to apply.
- Trip Calculation: For point-based toll plazas, each crossing will count as one trip. A round trip (to and fro) will be considered two trips. In closed tolling systems, where entry and exit are recorded, one complete journey will be counted as one trip.
- Optional Scheme: The annual pass is optional. Users can continue to pay tolls per trip with their regular FASTag if they prefer not to opt for the annual pass.
- Renewal: Once the 200-trip limit is exhausted or the one-year validity period ends, whichever comes first, the FASTag will revert to its normal payment mode. Users can then purchase a new annual pass if desired, even if the year has not fully passed.
This move underscores the government’s commitment to modernizing India’s road infrastructure and making highway travel more efficient and affordable for its citizens. The introduction of the FASTag annual pass is a significant step towards a truly seamless and cost-effective highway network.