Govt to Introduce ₹3,000 Annual Toll Pass, Aims for 50% Savings & Seamless Highway Travel
April 15 — In a significant step towards transforming India’s tolling system, the central government is preparing to launch a new toll policy that could offer commuters savings of up to 50% on highway toll charges. A major highlight of the upcoming initiative is a ₹3,000 annual pass for private vehicles, allowing unlimited travel across national highways, expressways, and state highways using the FASTag system.
Pilot Rollout on Delhi-Jaipur Highway
The initial rollout of the policy is planned for the Delhi-Jaipur highway, with a nationwide implementation of Automatic Number Plate Recognition (ANPR) technology expected by the end of the year. Cameras and sensors are already being installed across the highway network, and mapping operations are underway to prepare for the digital transition.
Focus on Seamless Digital Tolling
A key goal of the policy is to eliminate physical toll booths and enable barrier-free toll collection. Pilot programs using ANPR technology have shown a 98% success rate, offering a promising foundation for full-scale implementation. The move aims to drastically reduce congestion and waiting times at toll plazas.
Banks to Play a Larger Role in Enforcement
The policy also proposes giving banks a stronger enforcement role, including the authority to maintain minimum balances in FASTag accounts and implement penalties for non-compliance. In a novel development, banks may also be offered stakes in roadside infrastructure, aligning their incentives with the success of the tolling system.
Distance-Based Tolling to Replace Fixed Charges
Replacing the current flat-rate system, the government plans to introduce a distance-based toll model, charging approximately ₹50 per 100 kilometers for private cars. This more accurate approach ensures drivers pay based on how much they use the roads, rather than blanket rates at static toll booths.
From Monthly Passes to Nationwide Access
Unlike existing monthly passes that are valid only at specific toll plazas, the new ₹3,000 annual toll pass will offer unlimited access to the entire highway network. This is expected to significantly benefit frequent travelers and ease administrative hassle.
Policy Nears Final Stage Amid Resistance
Though the policy is in its final stages, implementation has faced resistance from toll operators due to existing contracts. To address these concerns, the Ministry of Road Transport and Highways plans to digitally track vehicle movement and compensate concessionaires using a standardized reimbursement formula.
Lifetime Pass Proposal Dropped
An earlier proposal for a ₹30,000 lifetime toll pass (valid for 15 years) was scrapped following contractor objections, state-level legal hurdles, and low consumer interest. The government instead opted for a more accessible and flexible annual pass model.
Heavy Vehicles to Lead the Transition
The policy will initially be implemented for heavy and hazardous goods vehicles, which make up the bulk of toll contributions. In FY 2024–25, the government collected ₹61,000 crore in toll revenue, with commercial vehicles contributing around 80% and private vehicles accounting for 20–21%.
Government Engages Stakeholders to Address Challenges
To smoothen implementation, the government has been conducting regular meetings with toll agencies, banks, and private contractors to resolve operational challenges and discuss improvements in road management and congestion control.
