Centre proposes annual, lifetime toll passes for national highways, expressways

FASTag recharge could soon be a thing of the past as the Indian government has proposed a move to offer annual and even lifetime passes to owners of private vehicles. With the potential of benefiting those who make frequent trips on the country's national highways and expressways, the proposal could not only make tolls more affordable but add to the convenience of breezing past toll gates, all while adding to the collection revenue figures.The government has proposed an annual toll pass with a one-time payment of ₹3,000 for unlimited use of national highways and expressways, as per a TOI report. Also, the proposal includes the introduction of a lifetime toll pass - for 15 years - with a one-time payment of ₹30,000. With this move, the Indian government aims to simplify toll collection and reduce congestion at toll booths across the country. The new annual and lifetime toll passes, priced at ₹3,000 and ₹30,000, respectively, is likely to be integrated with the existing FASTag system for unlimited national highway and expressway access.

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Last month, Union Minister for Road Transport and Highways, Nitin Gadkari said that the government is contemplating introducing monthly and yearly passes in lieu of toll collection for private vehicles on national highways as they account for only 26 per cent of total realisation. "74 per cent of toll revenue comes from commercial vehicles. We are considering introducing monthly or annual passes for private vehicles," he had stated.

Annual and lifetime toll pass: How will it work?

The Ministry of Road Transport and Highways (MoRTH) aims to provide an annual toll pass for private cars, which will cost the users ₹3,000 per year. The pass will be integrated into the existing FASTag account of the vehicle, allowing the user unlimited access to national highways and expressways. With this pass purchased, the user won't be required to recharge his or her FASTag account frequently for the next one year. Once the pass' validity is over, he or she can purchase another pass or recharge as per requirement.

The lifetime toll pass, too, works in a similar manner. The only difference in this case is the validity of this pass is for 15 years, and it costs ₹30,000. Like the annual pass, it will also be integrated into the user's FASTag account.

Currently, private car users can purchase a monthly rechargeable pass for ₹340 each for 12 months total, costing ₹4,080 annually. However, this pass is applicable only to one toll plaza. Considering that an annual toll pass costing ₹3,000 for unlimited travel across the entire national highway network will be a much cheaper option than the monthly passes. Also, the new annual pass will not restrict the car owners to unlimited use of only one toll plaza.

Annual and lifetime toll pass: Rationale behind the move

According to the data released by the MoRTH, in the last financial year (FY2023-24), private cars generated about ₹8,000 crore of revenue, while a total of 55,000 crore toll receipts were generated across the country's toll plaza network. While private cars comprised 53 per cent of total toll transactions, they constituted only 21 per cent of all toll receipts. Private cars account for almost 60 per cent of the traffic at toll lanes between 6 AM and 10 PM.

With the annual or lifetime toll passes, the government is expecting to see swifter toll plaza operations as well as reduced congestion. Also, this move is unlikely to impact the government's revenue stream, considering the largest chunk of the toll collection comes from commercial vehicles.

Annual and lifetime toll pass: Next phase of simplifying toll collection

The annual and lifetime toll passes would come as the next phase of simplifying the toll collection process across India. Back in 2014, the National Highway Authority of India (NHAI) introduced FASTag as a pilot project. Later, in December 2017, it became mandatory for all new passenger vehicles and commercial vehicles across India. FASTag was introduced as an electronic toll collection system that uses Radio Frequency Identification (RFID) technology. It allows vehicle owners and drivers to make automatic electronic payments at toll plazas.

This technology was introduced to reduce traffic congestion at toll plazas, resulting in saving time and skipping long queues at highway toll plazas. Also, FASTag has brought more transparency and simplification to the toll collection system, as vehicle owners and drivers can travel without the need to carry cash or stop longer at toll booths.

While a monthly pass was introduced earlier for private car owners, it has limitations. The current monthly toll pass can be used only on one toll plaza. The proposed annual and lifetime toll passes aim to bring more convenience to the users. Furthermore, they are cheaper compared to what the current monthly pass costs.

Interestingly, the Indian government is also working on introducing a satellite-based toll collection system. Christened the Global Navigation Satellite System (GNSS), the new technology will automatically collect tolls based on a vehicle's distance travelled. It is intended to replace the existing FASTag system for toll collection on national highways and expressways.

Vehicles equipped with GNSS will be able to travel toll-free for up to 20 kilometres in each direction per day on national highways and expressways. For journeys exceeding the 20-kilometre limit, tolls will be charged based on the actual distance covered. The technology will use software to record the vehicle's entry and exit and calculate the distance travelled, based on the tracking data of the vehicle's movement. Based on that, the toll will be deducted from the vehicle owner's account.

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