India Considers New FASTag Toll System With Rs. 3000 Annual Pass Option

India may soon roll out a Rs. 3000/- annual FASTag pass for highways

The Indian government is reportedly evaluating a significant overhaul of the national toll collection system, with plans to introduce a simplified, user-friendly model to enhance highway travel. At the heart of the proposal is a new FASTag Annual Toll Pass, which would allow private vehicle owners to travel across national highways and expressways for a flat fee of Rs. 3000 per year.

This fixed-fee model, if implemented, would replace the current system of per-journey toll deductions. Designed to encourage digital payments and streamline road use for frequent travellers, the initiative could potentially reduce congestion at toll plazas, eliminate the need for repeated FASTag recharges and simplify travel planning.

In parallel, the government is also considering a distance-based toll pricing structure. Under this model, users would pay Rs. 50 per 100 km travelled, offering a fair alternative for occasional highway users. This two-tiered pricing strategy reflects an effort to balance the needs of both regular and infrequent travellers.

The proposed changes are part of a broader push toward modernising India’s transportation infrastructure. A key component includes eliminating physical toll barriers, shifting to fully automated, barrier-free tolling. Technologies such as GPS tracking and automatic number plate recognition (ANPR) are expected to underpin this transition, allowing vehicles to move through toll zones without stopping.

One of the plan’s key advantages is its compatibility with the existing FASTag infrastructure. Vehicle owners would not need to submit new documents or alter their FASTag accounts to opt into the annual pass, ensuring a smooth transition for millions of current users.

An earlier suggestion for a Rs. 30,000/- lifetime FASTag valid for 15 years has reportedly been shelved, in favour of this more flexible, user-friendly approach. While the government has not officially confirmed the new system’s launch date or full details, preparations are said to be in advanced stages.

The initiative aligns with India’s broader goals of promoting digital governance, improving road transport efficiency and offering scalable solutions tailored to diverse user needs.