FASTag Update: 5 important things to know about the upcoming policy

fastag annual pass highway travel india

India’s toll collection system is about to witness a major transformation. The Ministry of Road Transport and Highways is introducing a new FASTag policy that allows unlimited highway travel for a flat annual fee. This shift aims to simplify toll payments, reduce congestion, and improve transparency in road usage.

₹3000 Annual Pass: Unlimited Travel Nationwide

The most significant highlight of the new policy is the ₹3000 annual pass, which allows a private car to travel unlimited kilometers across national highways, expressways, and state expressways.

This pass will be digitally linked to the vehicle’s FASTag account, removing the need for additional physical documents. Once activated, users can drive freely throughout the year without worrying about recurring toll charges.

Distance-Based Toll Pricing for Non-Subscribers

For those who don’t opt for the annual pass, the policy proposes a distance-based pricing system. Instead of the current toll plaza-specific charges, vehicles will pay a flat ₹50 per 100 km.

This move will make toll charges uniform and predictable, especially for commuters who take varying routes and distances. The standardized rate removes confusion around differing tolls at each plaza and supports fair pricing based on road usage.

Barrier-Free Tolling: End of Toll Plazas

One of the major reforms under the new policy is the elimination of physical toll plazas. The government plans to shift to a barrier-free, sensor-based tolling system using FASTag.

This system will allow vehicles to pass through checkpoints without stopping, using advanced sensors and vehicle recognition technology. FASTag scanners and sensors will be standardized and authorized by the government to ensure seamless integration across all roads.

Digital Recordkeeping & Contractor Compensation

To address concerns from toll contractors, especially under the unlimited pass model, the Ministry has introduced a digital compensation model.

Toll contractors, whose revenue previously depended on toll plaza collections, will be compensated based on digital travel data. This data will be captured through FASTag sensors and analyzed using a government-approved formula, ensuring transparency and fairness in payments.

Enhanced Bank Role and Penalty Enforcement

The new policy strengthens the role of banks in toll collection. To prevent toll evasion, banks will be allowed to impose minimum balance requirements in FASTag accounts.

Additionally, if a FASTag-linked account misses a payment, banks can levy penalties. These measures are expected to significantly reduce non-payment issues and improve compliance.

₹30,000 Lifetime Pass Dropped

An earlier proposal for a ₹30,000 lifetime toll pass, valid for 15 years, has been shelved. The decision comes after discussions with stakeholders revealed limited public interest and a lack of consensus on implementation.

The focus now is on the annual pass model, which offers a balance between affordability and practicality.

Crackdown on Duplicate and Illegal FASTags

The government continues to push for cleaner and more efficient toll systems. Following last year’s “One Vehicle, One FASTag” rule, nearly 1 crore duplicate or illegal FASTags were deactivated.

With the new policy, enhanced sensor systems will be deployed to ensure accurate vehicle detection and prevent misuse of the toll network.

State-Level Coordination and Technology Integration

To ensure the policy’s success, the Centre is collaborating with state governments and technology partners. Meetings have been held to address challenges like vehicle alignment, equipment calibration, and data sharing.

The goal is to bring uniform tolling practices across all roads—whether national or state-managed—and to use technology to bridge any gaps.

Benefits for Daily Commuters and Long-Distance Travelers

This policy is designed with commuter convenience in mind. Whether you’re a daily highway user or an occasional long-distance traveler, the system offers clear advantages:

  • Time Savings: No more waiting at toll plazas.
  • Cost Predictability: Fixed yearly cost or simple per-kilometer pricing.
  • Greater Transparency: Digital records and uniform pricing across India.
  • Ease of Use: FASTag-linked systems reduce paperwork and confusion.