Everything You Need to Know About the Proposed FASTag Annual Toll Pass Policy
The Government of India is reportedly considering a new toll policy that could eliminate the need for recurring FASTag recharges, aimed at reshaping India’s toll collection system and easing vehicular movement across national and state expressways.
The proposed policy outlines the introduction of an annual toll pass priced at ₹3,000, granting vehicle owners the ability to travel unlimited distances across highways throughout the country for one full year.
The report, published by the Times of India, suggests that the Ministry of Road Transport and Highways (MoRTH) is currently evaluating the feasibility of this system, which also includes the implementation of distance-based pricing for infrequent travellers and a complete overhaul of traditional toll collection methods.
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While the government has yet to officially confirm the proposal, the details provide a comprehensive view of what could become a transformative shift in India’s road transport infrastructure.
Key Highlights of the Proposed FASTag Annual Toll Pass Policy:
1. One-Time Payment for Unlimited Travel
Under the new system, vehicle owners would be allowed to make a single annual payment of ₹3,000, which would entitle them to unlimited access to all national highways, expressways, and state expressways. This initiative seeks to simplify the process of toll payments, reduce operational delays, and eliminate the need for regular FASTag recharges.
2. Simplified Transition for Existing FASTag Users
The transition to the new system is expected to be seamless for existing FASTag users, who will not be required to furnish additional documentation or modify their existing accounts. This ease of integration ensures that the current FASTag infrastructure can adapt to the new model with minimal disruptions. The earlier policy proposing a lifetime FASTag with a one-time fee of ₹30,000 for 15 years has been scrapped under the new framework.
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3. Distance-Based Pricing Option
For those who do not travel frequently, the government has proposed a “pay-as-you-go” pricing model, wherein users would be charged ₹50 per 100 kilometres. This dual-structure system ensures flexibility and affordability for both regular commuters and occasional travellers.
4. Barrier-Free Toll Collection
Another crucial element of the proposed reform is the introduction of barrier-free toll booths. These would replace the current sensor-based or physical barriers, streamlining vehicle movement and reducing travel time. The removal of physical barriers is expected to alleviate traffic congestion, lower fuel consumption, and improve overall road efficiency.
5. Impact on Toll Revenue and Compensation Model
A policy shift of this magnitude would inevitably affect the toll revenue streams of highway contractors. To address this, the MoRTH is considering a compensation plan based on digital travel data. This system would likely involve close monitoring and auditing of travel patterns to ensure fair reimbursement to private concessionaires managing toll roads.
6. Enforcement and Evasion Control
To curb toll evasion under the new model, banks may be granted additional authority to enforce compliance. Although specifics are yet to be detailed, this suggests a move towards a more digitised and accountable toll payment ecosystem.
However, it is important to note that the proposal is still under review and no official confirmation has been issued by the government at the time of writing. Independent verification of the policy details is pending, and further announcements are expected in the coming months.
