26 May 2025: The centre is planning to introduce a new annual FASTag pass, offering users the option of unlimited highway travel for a flat fee of ₹3,000 per year. Alternatively, a distance-based pricing model will also be available, allowing users to pay ₹50 for every 100 kilometers traveled, reports Livemint.
Unlimited travel with a one-time payment
Under the proposed plan, users will be able opt for an annual pass by paying ₹3,000 once a year. This payment grants unlimited access to national highways, expressways, and state expressways without the need for any additional recharges throughout the year.
Pay-as-you-go option
For those who do not travel long distances regularly, a distance-based pricing model is also on offer. In this model, users pay ₹50 for every 100 kilometers, replacing the current variable toll rates. This option provides flexibility and affordability for occasional travelers.
Barrier-free toll booths
The new system aims to eliminate physical barriers at toll booths by replacing sensor-based gates with a completely barrier-free experience. According to a report by The Times of India, this change is expected to significantly improve traffic flow, reduce fuel consumption, and minimize congestion at toll plazas.
Transition for existing FASTag users
Existing FASTag accounts will remain valid, and users can seamlessly switch to the new system. The government promises a hassle-free transition, allowing current users to adopt either the annual pass or the pay-as-you-go model without needing a new account. However, the previously available ₹30,000 pass for 15 years will no longer be offered.
The policy is still pending implementation, and the government is working on developing a compensation framework for existing highway contractors, as the new toll system is expected to impact their revenue. Additionally, banks will be given expanded authority to enforce toll collection rules, including the ability to mandate a minimum FASTag balance to prevent toll evasion.
Summary:
The FASTag annual pass allows unlimited highway travel for a fixed yearly fee, simplifying toll payments and offering cost savings for frequent travelers across India.