New Toll Rules to Offer Major Relief to Commuters with Annual Passes and Barrier-Free Travel

In a landmark move aimed at overhauling the country’s toll collection system, the Indian government is set to announce new toll rules that promise significant relief to road users. The new policy could slash toll charges by up to 50 per cent for regular commuters and introduce a game-changing annual pass system priced at just ₹3,000. This pass will allow unlimited travel for cars across national highways, expressways, and state highways for a full year, a first for Indian road infrastructure.

The policy, which is said to be in its final stages, seeks to replace the existing plaza-based tolling model with a per-kilometre fee structure. Under this new format, private vehicles are expected to pay around ₹50 for every 100 kilometres, making long-distance travel significantly more affordable. For frequent commuters, however, the highlight is the ₹3,000 annual pass, a one-time payment option that ensures complete exemption from tolls across all public highways. This pass will be linked directly to the user’s FASTag account, eliminating the need for any additional documentation or physical passes.

Currently, the toll relief system is largely limited to monthly passes offered at specific plazas, mostly benefiting local residents. The proposed annual pass represents a more universal, borderless solution that aims to integrate national and state road networks into one seamless ecosystem.

Policy Hurdles and Strategic Adjustments

The ambitious proposal, however, faced considerable opposition during its formulation, particularly from toll concessionaires and infrastructure contractors. Existing agreements with these stakeholders do not permit such blanket exemptions. To counter this, the Ministry of Road Transport and Highways has proposed a compensation mechanism. Concessionaires will maintain detailed digital logs of vehicle movements using FASTag and ANPR (Automatic Number Plate Recognition) data. The revenue shortfall, calculated as the difference between actual and expected toll collections, will be reimbursed by the government according to a pre-agreed formula.

Notably, the government had initially explored offering a lifetime pass for ₹30,000 with 15-year validity. However, the idea was shelved after concerns were raised by banks and states with varying vehicle age laws and due to lukewarm consumer interest in such long-term commitments.

ANPR and FASTag to Enable Seamless Tolling

At the core of the new policy is a commitment to barrier-free electronic tolling. Pilot projects conducted across three locations have shown an impressive 98 per cent accuracy rate, validating the use of ANPR technology. The new system will use a combination of ANPR and FASTag to identify and charge vehicles, drastically reducing congestion at toll booths, a persistent pain point for highway users.

To support this vision, the government is upgrading tolling infrastructure across the country with high-resolution cameras and vehicle-detection sensors. The nationwide rollout of ANPR is expected to be completed by the end of this year, beginning with high-risk categories such as trucks transporting hazardous materials. The entire road network has already been digitally mapped to facilitate this transformation.

Banking Reforms and Highway Amenities in Focus

In parallel, the policy incorporates several reforms aimed at empowering banks to ensure compliance. Banks will be permitted to impose minimum balance requirements for FASTag users and introduce stiffer penalties for toll violations. In a bid to align incentives, the policy also proposes giving banks partial ownership of roadside facilities such as rest stops and fuel stations, a move that may encourage better customer service and more efficient toll recovery mechanisms.

According to officials involved in the policy planning, the Delhi-Jaipur highway will likely be the first to implement the new toll framework. The central government is also engaging with various state governments to ensure their roadways are included in the unified tolling system, ensuring comprehensive coverage for users.

Despite progress on the technological front, real-world challenges at toll plazas persist. In just the past two weeks, two high-level meetings were held between highway authorities, project directors, concessionaires, and implementation agencies to streamline the rollout and troubleshoot existing issues.

With the official policy announcement expected imminently, commuters across the country could soon benefit from a radically improved and cost-effective highway travel experience, one that embraces modern technology and eases the financial burden on everyday road users.

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