FASTag Annual Pass: What is it, how it impacts existing users & more | All you need to know

A proposed policy may introduce an annual toll pass for 3,000, allowing unlimited travel on highways and eliminating FASTag recharges. It also suggests distance-based pricing and barrier-free toll booths to enhance traffic efficiency and ease congestion.

Written By Riya R Alex
Published26 May 2025, 09:37 AM IST
Government plans annual pass for unlimited highway travel at  <span class='webrupee'>₹</span>3,000.
Government plans annual pass for unlimited highway travel at ₹3,000.

The government is considering to introduce an annual pass system for toll collection with a payment of 3,000 for unlimited travel on highways, eliminating FASTag recharges. The policy also proposes distance-based pricing and barrier-free toll booths to improve traffic flow with the goal to simplify travel in national highways, according to a report by the Times of India.

Here's everything you need to know about the proposed policy —

 

One-time payment system

Vehicle owners will be allowed to make one-time annual payment of INR 3,000 to travel unlimited distances on all national highways, expressways, and state expressways entire year, according to the proposed policy. After the implementation of this policy, FASTag recharges will not be required for travel across the country.

 

Also Read | Govt denies nationwide rollout of satellite-based tolling from 1 May 2025

Distance-based pricing

The policy proposes a “pay-as-you-go model” at 50 per 100 km, convenient for those who do not travel often.

What about existing FASTag users?

The vehicle owners can transition to the new system without the need to show any additional documents or account changes. The FASTag users can shift to the new policy with their current accounts. Additionally, the earlier policy to introduce a lifetime FASTag with a one-time payment of 30,000 for 15 years has been scrapped.

 

Also Read | FASTag rules all set to change from February 17 – Top 5 things you need to know

No barriers at toll booths

According to the proposed policy, toll booths will not have physical barriers, and the existing sensor-based systems will be phased out. This initiative is expected to make travelling more seamless and quick. Additionally, the barrier-free toll booths will ease traffic congestion and reduce fuel consumption.

 

Also Read | New FASTag rules effective today: What you need to know

What happens to toll revenue?

If implemented, the latest policy is expected to impact the toll revenue of highway contractors. Consequently, the Ministry of Road Transport and Highways (MoRTH) will formulate a compensation plan based on digital travel data. Banks will be given more authority to curb toll evasion by introducing several measures.

However, the government has not given official confirmation on the latest toll collection policy. Livemint could not independently verify the report.

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