Govt’s New Toll Policy: ₹3,000 Annual Pass for Unlimited Highway Travel, Up to 50% Toll Relief Likely
Govt's New Toll Policy: ₹3,000 Annual Pass for Unlimited Highway Travel, Up to 50% Toll Relief Likely
In a major move aimed at easing travel costs and reducing congestion, the central government is set to roll out a new toll policy that could offer up to 50% savings on toll charges for commuters. A key feature of this policy is the introduction of an annual toll pass for private cars at a one-time fee of ₹3,000. This pass will grant toll-free access to national highways, expressways, and state highways through the existing FASTag system, eliminating the need for separate documentation.
The new toll policy is reportedly in its final stages and may be announced soon. It proposes a shift to a distance-based tolling system, where vehicles will be charged based on the number of kilometers traveled—approximately ₹50 per 100 kilometers for cars—replacing the current toll plaza model.
In contrast to existing monthly passes that are limited to specific toll booths, the upcoming annual pass will enable unlimited travel across the entire highway network. However, the policy’s implementation encountered resistance from toll operators due to existing contractual obligations. To address this, the Ministry of Road Transport and Highways plans to compensate operators for any potential revenue loss using digital vehicle tracking and a standardized reimbursement formula.
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Earlier plans to introduce a ₹30,000 lifetime pass with 15 years of validity were scrapped due to objections from contractors, differences in state laws, and lukewarm consumer response. The upcoming policy also focuses on implementing a barrier-free electronic toll collection system. Pilot programs have shown a 98% success rate. To address concerns from banks about toll collection enforcement, the policy will empower banks to maintain minimum balances in FASTag accounts and levy stricter penalties for non-compliance.
In an innovative step, banks may also receive stakes in roadside infrastructure, enhancing their role in the tolling ecosystem. The initial rollout is expected on the Delhi-Jaipur highway, with full-scale implementation of the Automatic Number Plate Recognition (ANPR) system planned by the end of the year. In 2024-25, the government earned Rs 61,000 crore through toll collection. Private vehicles contributed 20-21 per cent, while commercial and heavy vehicles accounted for 79-80 per cent.
The system will initially cover heavy and hazardous-goods vehicles. Nationwide mapping and installation of cameras and sensors are already underway. The government is also collaborating with states to bring their roads under the new toll regime. Despite these developments, issues like toll plaza congestion persist. Officials have recently conducted meetings with agencies and concessionaires to improve road management and ensure the smooth implementation of the new policy.
