May 24, 2025 - The Central government is in the process of finalising a new toll policy that will streamline the FASTag process and benefit frequent travellers, especially those who are daily on the highway. The aim is to make toll operations smoother and do away with delays so that road travel becomes efficient, transparent and seamless throughout the country.

The key element of this policy will be to eliminate frequent toll top-ups. The government plans to introduce an annual pass for unlimited travel. For a one-time fee of Rs 3,000, a car can travel an unlimited number of kilometres on State and national highways and motorways for a full year. There is no need for a separate physical document because this pass will be connected to the FASTag account.

The new policy replaces the present toll plaza-based system with a flat fee of Rs 50 every 100 kilometres for individuals who choose not to purchase the yearly pass. As a result, toll prices will become steady and predictable.

Going forward, the government plans to do away with toll plazas and implement a sensor-based toll collection using FASTag. Vehicle recognition will become easier with the use of sensors through a unified way of installing FASTag.

Banks may have a greater role to play to tackle toll evasion concerns. Penalties may be imposed for missed payments and a minimum balance requirement in FASTag accounts may become a condition by banks.

Once this new scheme is implemented, current FASTag users can easily transition into it using their present account. They will not be required to submit additional documents or make a new account.

Meanwhile, the government has dropped its earlier proposal of a lifetime FASTag costing Rs 30,000 for 15 years.

With Media Inputs