FASTag Update: One Payment, Unlimited Travel – ₹3000 Yearly Pass for Boundless Highway Journeys Throughout India

New toll policy aims for barrier-free travel, flat rate system, and national integration of toll networks

The Central Government is finalizing a new toll policy that proposes a flat-fee system and aims to make travel smoother across India’s highways.

Highlights of the Proposed Toll Policy

• Annual Pass for Unlimited Travel:
  A one-time payment of ₹3000 will enable a car to travel unlimited kilometers for an entire year across national highways, expressways, and state expressways. This pass will be linked to the FASTag account—no need for a separate physical document.
• Distance-Based Pricing System:
  For those not opting for the annual pass, the new policy proposes a flat rate of ₹50 per 100 km, replacing the current toll plaza-based system. This will make toll charges predictable and consistent.
• Barrier-Free Tolling:
  The policy includes a plan to eliminate toll plazas and implement seamless, sensor-based toll collection using FASTag. A unified way of installing FASTag and sensors will be authorized to improve vehicle recognition.
• Digital Recordkeeping and Contractor Compensation:
  Since current contracts with toll operators don’t account for unlimited travel, the Ministry of Road Transport and Highways will compensate them based on digital records and a government-approved formula. This clears a major hurdle for implementation.
• Increased Bank Involvement and Penalties:
  To address concerns around toll evasion, banks will be given more powers. They may enforce conditions like a minimum balance in FASTag accounts and impose penalties for missed payments.
• No Lifetime Pass for Now:
  A previously proposed ₹30,000 lifetime pass (valid for 15 years) has been dropped due to disagreements among stakeholders and limited public interest.
• Focus on Enforcement and Clean-Up:
  Following last year’s “One Vehicle, One FASTag” rule, nearly 1 crore illegal or duplicate FASTags were deactivated. The government continues to crack down on misuse, with enhanced sensor systems being developed for accurate detection.
• Collaboration with State Governments:
  The Centre is working with states to ensure the policy covers all types of roads. Meetings have been held with highway management and technology partners to resolve issues like vehicle alignment at toll plazas.

What This Means for Commuters

This policy is designed to benefit frequent travelers, especially daily highway users. With smoother toll operations, predictable costs, and fewer delays, the new system could significantly improve road travel efficiency and transparency across India.