Union Minister of Road, Transport and Highways Nitin Gadkari on June 18 announced a FASTag-based annual pass for commuters in India.
Gadkari said, “In a transformative step towards hassle-free highway travel, we are introducing a FASTag-based annual pass priced at ₹3,000, effective from 15th August 2025. It is valid for one year from the date of activation or up to 200 trips—whichever comes first."
“This pass is designed exclusively for non-commercial private vehicles such as cars, jeeps, and vans. The annual pass will enable seamless and cost-effective travel across national highways throughout the country,” he said.
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 NHAI and MoRTH,” the minister added.
According to Gadkari, this policy is designed to address long-standing concerns about toll plazas situated within a 60 km range and to streamline toll payments through a single, affordable transaction. He mentioned that by cutting down wait times, reducing congestion, and minimising disputes at toll plazas, the annual pass is intended to provide a faster and more seamless travel experience for millions of private vehicle owners.
Vehicle owners can shift to the new system without the requirement to show any additional documents or account changes. FASTag users can transition to the new policy with their current accounts. The earlier plan to set up a lifetime FASTag with a one-time payment of ₹30,000 for 15 years was scrapped.
"This is to clarify that no such decision has been taken by the Ministry of Road Transport and Highways or National Highways Authority of India (NHAI) regarding the nationwide implementation of satellite-based tolling from 1st May 2025," the Ministry of Road Transport and Highways had stated, PTI reported.
The National Highways Authority of India (NHAI) invited bids for the rollout of the ‘Automatic Number Plate Recognition (ANPR)-FASTag-based Barrier-Less Tolling System’, which will be installed at selected toll plazas. A decision will be taken regarding its implementation across the country after considering the system's performance, efficiency, and user response, it further said.
All national highway toll plazas function on the ICD 2.5 protocol, which provides real-time tag status. Thus, FASTag customers can recharge at any time prior to crossing the toll plaza.
According to an official statement from the ministry, the advance tolling system identifies vehicles by reading their number plates and utilising the existing FASTag infrastructure, which uses Radio-Frequency Identification (RFID) for toll collection.
Under this new setup, vehicles will be charged automatically through high-performance ANPR cameras and FASTag readers, eliminating the need to stop at toll plazas. If a vehicle fails to comply, an E-Notice will be issued to the violator. Failure to pay may lead to FASTag suspension and additional penalties under the VAHAN system, an ANI report said.