The introduction of FASTags was a revolutionary step in the Indian automobile industry which made the process of toll payment a breeze
In a rather exciting development, the government of India is planning to introduce annual and lifetime passes for vehicle owners to make toll payments easier and inexpensive. The Indian road infrastructure has been expanding swiftly in the last few years. We see the construction of highways all across the nation. This ranges from city roads to world-class expressways designed to reduce the travel time between major Indian cities drastically. As a consequence, toll plazas also came up correspondingly. While it has improved the overall driving experience for private, as well as commercial vehicles considerably, there were some issues still.
Government Plans Annual and Lifetime Toll Passes
Ever since the convenience of FASTags, people don’t have to wait for the toll plaza operators to manually collect cash and issue a pass for the vehicle to cross. It simply offers the RFID (Radio Frequency Identification), which automates the entire process. Essentially, this FASTag is connected to the bank account of the car owner. Upon reaching the toll plaza and scanning the FASTag, the toll fee is deducted from the owner’s bank account automatically. Hence, cars don’t have to wait in long queues for minutes (or even hours in some cases!).
Now, the problem with this system is that even if some people want to use the toll road for, let’s say, 1 km, they have to pay the full amount to pass through the plaza. That is, unsurpingly, a conundrum. They complained that the toll fee should be levied based on the distance travelled on the road. That is where the proposal for GPS-enabled toll payment first surfaced. The point was to calculate the exact distance someone uses the highway for and then issue the fee accordingly. In fact, the government has been in advanced stages of this method for a while.
However, as per the latest reports, we are hearing that there is yet another solution to this problem. As a matter of fact, the new procedure is aimed at benefitting every car owner in the country. We could soon get the option to purchase a toll pass. This could be annual or lifetime. In fact, you will simply need to pay a one-time fee of Rs 3,000 for 1 year. This will allow you unlimited usage for one complete year. Alternatively, there will also be the option of a lifetime pass for Rs 30,000. This will be valid for 15 years. Again, there will be no restriction on the number of times you can cross the toll plazas.
Currently, there is the option to buy a monthly pass for Rs 340 per month. This amounts to Rs 4,080 per annum. Also, to get this pass, there are a few formalities and documents that one needs to submit. This includes address proof and other related details. Therefore, a yearly payment of Rs 3,000 to traverse across the national highways certainly seems like a brilliant deal. Needless to mention, this will affect the revenues for the NHAI initially. However, the government is confident that these losses will be compensated over a long duration after the implementation of this system. In the end, it will be a win-win situation for everyone.
In a recent interview of MoRTH Minister, Nitin Gadkari with NDTV, when he was asked about any developments in the toll payment case, he promised that the government would soon make an announcement which would bring a huge relief to car users across the nation. Nitin Gadkari mentioned that the government study has been completed and they are ready to roll out a scheme which will benefit toll-paying car owners immensely.
Apart from that, he even mentioned a satellite-based toll collection system. Understandably, he was not revealing all the details regarding what exactly the ministry has come up with. Still, he said that the new policy will take into consideration the judicial rights of the people. He agreed that people are a bit upset with the toll system at the moment which is why there have been so many memes on the internet about Nitin Gadkari. Nevertheless, the MoRTH Minister looked confident about the upcoming toll policy.
My View
Now, we already know that the citizens of India are currently joyous after the recent Union Budget 2025. The government announced that there will be no income tax on salaries or business incomes up to Rs 12 lakh annually. That is a huge decision since an overtly large populace earns in this price bracket. This means that there will be more disposable income in the hands of people. Consequently, they will spend and consume more, which, in turn, will boost the economy. On top of that, if people also get some form of relief from the toll fees, it will be the icing on the cake. Judging by this interview, the announcement should come anytime now. I shall keep an eye out for that.
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