Government proposes annual and lifetime toll passes for national highways

To offer relief to private vehicle owners and achieve simplification in toll collection, the Indian government is planning to provide annual toll passes and lifetime toll passes for unrestricted mobility on the national highways.

Sources state that the Ministry of Road Transport and Highways is likely to provide an annual toll pass, a‚3,000 per year, and a 15 years lifetime pass, a 30,000.

These passes will be incorporated into the current FASTag system, and therefore, no further documentation or equipment would be required. Now, private car users can get a monthly rechargeable pass for a 340 each for 12 months total (costing 4,080 annually), applicable only to 1 toll plaza.

The presented yearly pass provides a cheaper alternative with unlimited travel on all the infrastructure of the national highway system.

Union Road Transport Minister Nitin Gadkari recently shed light on the ministry's steps to bring this plan to reality, with an eye to resolving issues with toll plazas within municipal limits and gaps of less than 60 kilometres between toll points.

Data from the 2023-24 fiscal year shows that private vehicles generated about 8,000 crore of the total 55,000 crore toll receipts. Although comprising 53% of toll transactions, private vehicles constitute only 21% of all toll receipts.

 Furthermore, private cars account for almost 60% of the traffic at toll lanes between 6 a.m. and 10 p.m.

Although the National Highways Authority of India (NHAI) may face a revenue slowdown in the short term, officials maintain that the introduction of these passes is unlikely to lead to financial losses in the long term.

The project is projected to ameliorate the ease of commuting and decrease congestion at tollbooths, thereby supporting a more effective transportation network.