Govt mulls new toll policy with ₹3,000 annual FASTag pass, digital tolling to replace booths: Reports

The policy, under review by the Ministry of Road Transport and Highways (MoRTH), aims to reduce travel costs, eliminate toll booths and streamline the toll collection process.

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Govt mulls new toll policy with ₹3,000 annual FASTag pass, digital tolling to replace booths: Reports

In a major move to make highway travel more seamless and cost-effective, the central government is reportedly working on a new toll policy that could offer private vehicle owners an annual FASTag pass for unlimited travel on national highways and expressways.

According to a report, citing senior government officials, the proposed policy would allow users to opt for an annual FASTag pass at a one-time payment of ₹3,000.

This would grant unlimited access to all national highways and state expressways for a year, without additional toll charges.

The ministry is also evaluating a dual toll payment structure for FASTag users. Under this system, users can choose between:

  • The annual pass for unlimited travel, or
  • A distance-based fare, possibly set at ₹50 per 100 km, replacing the current toll plaza-based pricing.

This dual-option model is intended to provide flexibility to both occasional and frequent travellers.

No extra paperwork, easier transition for users

For current FASTag users, the transition is expected to be hassle-free. The new system would require no additional documents or account changes. Users can simply opt-in through their existing FASTag-linked accounts.

The government has reportedly dropped the earlier proposal for a lifetime FASTag pass, which would have cost vehicle owners ₹30,000 for a 15-year validity.

Digital tolling to replace booths

As part of the new policy, the government also plans to eliminate physical toll plazas. Toll collection would instead be handled digitally via sensor-based systems, GPS, and automated vehicle tracking. This is aimed at reducing congestion and ensuring smoother, faster travel across India’s road network.

Addressing stakeholders’ concerns

The new framework will also include measures to protect the interests of toll contractors and operators. Compensation could be calculated using digital toll data and a government-approved formula.

Additionally, banks may be empowered to curb toll evasion, possibly by ensuring a minimum balance requirement in FASTag-linked accounts.

If implemented, the new toll policy could reduce long-distance travel costs for regular highway commuters and enhance the overall efficiency of India’s tolling system.

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