Archive · 23 May 2025
India's New FASTag Policy: Simplifying Highway Tolls
The Indian government is planning new rules for highway tolls using FASTag.
Drivers could pay INR 3,000 yearly for unlimited travel, or pay INR 50 for every 100 km.
Existing FASTags will work.
Toll booths may be removed, using sensors instead.
The government is working on compensating highway contractors for any revenue changes.
This aims to make travel easier for drivers.
The Central Government is planning changes to India's toll collection system.
Drivers can choose an annual pass for INR 3,000 or pay INR 50 per 100 km.
Existing FASTag users can continue using their accounts.
The plan to introduce a lifetime FASTag with a hefty one-time fee has been removed.
The new system aims for barrier-free tolling using sensor-based systems.
- Who
- The Central Government and vehicle owners.
- What
- A new policy is proposed with two payment options for FASTag users: annual pass or distance-based pricing.
- When
- The policy is currently under consideration.
- Where
- On national highways, expressways, and state expressways in India.
- Why
- To simplify toll collection and improve the travel experience.
Government
Highway Contractors
Potential Impact on Highway Contractors
Government
The Ministry of Road Transport and Highways will develop a compensation formula based on digital travel data to address this.
Highway Contractors
Highway contractors could face reduced toll revenue.
- Annual Pass Cost
- INR 3,000
- Distance-Based Pricing
- INR 50 per 100 km
- FASTag Transition
- Existing FASTags can be used
- Proposed Policy Status
- Under consideration