FASTag New Rule || 'Charge Per Km You Move': How The New Annual Pass Will Work & Who Stands To Benefit

Union Minister Nitin Gadkari Today (June 18) announced a new FASTag-based annual pass for private vehicles at Rs 3,000. Starting August 15, it aims to make highway travel faster, cheaper, and easier.

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NEW DELHI: Union Minister for Road Transport and Highways, Nitin Gadkari, has introduced a FASTag-based Annual Pass priced at Rs 3,000, especially for private vehicles like cars, jeeps, and vans. This new initiative will be effective from August 15, 2025, and aims to make highway travel smoother and quicker for regular users.

In his post on X (formerly Twitter), Nitin Gadkari said,

“Important Announcement, In a transformative step towards hassle-free highway travel, we are introducing a FASTag-based Annual Pass priced at Rs 3,000, effective from 15th August 2025.”

Important Announcement 📢

🔹In a transformative step towards hassle-free highway travel, we are introducing a FASTag-based Annual Pass priced at ₹3,000, effective from 15th August 2025. Valid for one year from the date of activation or up to 200 trips—whichever comes…
— Nitin Gadkari (@nitin_gadkari) June 18, 2025

This new FASTag pass is not applicable for commercial vehicles like trucks or buses. It is designed only for personal vehicles, which use national highways frequently.

How to Activate the FASTag Annual Pass?

Nitin Gadkari further explained in a follow-up post on X,

“A dedicated link for activation and renewal will soon be made available on the Rajmarg Yatra App as well as on the official websites of NHAI and MoRTH.”

Once activated, the pass will be valid for one year from the date of activation or 200 trips—whichever comes first.

Benefits of the New FASTag Annual Pass

This new scheme is being seen as a time-saving and cost-effective move by the Ministry. Here’s how it helps:

It tackles problems related to toll plazas located within a 60-kilometre range.
With a one-time payment of Rs 3,000, users can avoid regular toll payments.
Reduces waiting time at toll booths, which helps ease traffic congestion.

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Helps prevent disputes at toll plazas by offering a simple and prepaid toll system.
Millions of daily highway users will benefit from a faster and more comfortable travel experience.

Understanding the New Kilometre-Based Toll Policy

In another major move, the government is also planning to introduce a kilometre-based tolling system. Under this system, users will only pay for the exact distance travelled on national highways and expressways—not for the entire toll stretch.

This dynamic tolling method will be supported by advanced technology including:

FASTag scanners at both entry and exit points
High-resolution surveillance cameras to monitor vehicle movements
ANPR (Automatic Number Plate Recognition) technology for accurate tracking

According to reports, these upgrades will support the move towards a more transparent and fair tolling system.

How Is This Different From the Current System?

Currently, under the National Highways Fee Rules, 2008, toll charges are fixed based on standard 60 km segments. Whether you drive for just 5 km or a full 59 km, you still pay the same toll rate.

If the kilometre-based model is implemented:

You will only be charged for the actual kilometres you travel
No minimum payment will apply
Short trips will become much more affordable

This change supports the concept of usage-based pricing—you pay for what you use.

How the New Toll System Will Work

Here’s a step-by-step explanation of the new kilometre-based tolling process:

ANPR cameras will scan your vehicle number at the toll entry point.
When you exit the highway, another camera will log your exit point.
The system will calculate the exact distance travelled.
Toll charges will be automatically deducted from your FASTag-linked bank account.

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In case your FASTag account has insufficient balance, you may face a penalty as per the proposed rules.

Barrier-Free Tolling in the Future?

The government is also working on implementing barrier-free tolling, which would eliminate the need for physical toll plazas completely.

Benefits of this system include:

Faster travel as vehicles don’t stop at toll booths
Less fuel wastage and idling
Reduced traffic jams on busy highways
Fewer toll disputes and errors

This could bring India closer to international best practices in road toll management.

FASTag Annual Pass Under Further Review

While the Rs 3,000 FASTag Annual Pass has been introduced, sources say the government may expand this concept further.

As per early proposals:

Vehicle owners would pay a flat annual fee (Rs 3,000)
This would allow unlimited travel on national highways
It aims to simplify toll payments and offer more value for frequent travellers

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Who Is It For?

The FASTag Annual Pass will apply only to non-commercial vehicles such as cars, jeeps, and vans. It will offer up to 200 trips on national highways and will be valid for one year or 200 trips, whichever comes first.

Where Can It Be Activated?

Gadkari said that a link for activation and renewal will be available on the Rajmarg Yatra App, and on the official websites of NHAI and MoRTH.

What Problem Will It Address?

The FASTag Annual Pass is expected to:

Ease congestion at toll plazas
Reduce wait times
Cut down on disputes
Solve long-standing issues over toll plazas within a 60 km radius by offering a single, upfront payment

How Are Trips Counted?

A ministry official explained:

One trip is counted every time a vehicle crosses a toll plaza. For example, someone traveling from Delhi to Agra via the Yamuna Expressway would cross tolls at Jewar, Mathura, and Agra. This would be counted as three separate trips.

However, in closed tolling systems, where toll is collected only at the exit, the entire journey is counted as one trip.

“This will also be a cost-effective option for the commuters,”

-the official said.

Would Users Need a New FASTag?

No, users do not need a new FASTag. The Annual Pass can be linked to the existing FASTag. After expiry—either after one year or 200 trips—it can be recharged easily.

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Who Would Benefit?

The official said:

“The pass would benefit frequent city-to-city travellers and those who drive regularly to their hometowns. You won’t need to top up FASTag every week or month anymore”

How FASTag Has Changed Tolling in India

With a 98% adoption rate and over 8 crore FASTag users, this system has already revolutionized toll collection in India.

This new pass continues the reforms started last year, where vehicles without FASTag are charged double toll, to ensure quicker and more efficient toll plaza operations.