Government to implement annual FASTag pass valid across NHs at Rs 3,000 from Aug 15

In a bid to enhance convenient and cost-effective traveling across national highways, the government will introduce a new FASTag-based annual pass for private vehicles at Rs 3,000 from August 15, according to Road Transport and Highways Minister Nitin Gadkari. The government has come out with an official notification to amend the National Highway Fee Rules, 2008, in this regard.

“In a historic initiative, a FASTag-based annual pass priced at ₹3,000 is being introduced from August 15, 2025. The pass will be valid for one year from the date of activation or up to 200 journeys, whichever is earlier,” Gadkari wrote on the social media platform X.

Under this new initiative, private vehicle owners will have the option to purchase an annual pass for a payment of ₹3,000, granting them unlimited travel without the need for recurring toll deductions. With this, users can replace the current pay-per-journey toll method.

“This pass is specially designed for non-commercial private vehicles (cars, jeeps, vans etc.) only and will enable seamless travel on National Highways across the country,” the minister noted.

The annual pass will be valid for one year or 200 crossings through any fee plaza on a national highway, whichever is earlier, irrespective of the fee leviable at each fee plaza.

The entry and exit of a mechanical vehicle through a fee plaza will be considered as a single crossing. The annual fee may be revised annually with effect from April 1 of every year, the notification said.

The dedicated link for the activation and renewal of the annual FASTag-based pass will soon be available on both the Highway Travel App and the official National Highways Authority of India (NHAI) website.

“This policy will address the long-standing concerns regarding toll plazas within a radius of 60 km and streamline toll payments through a single convenient transaction. The Annual Pass policy is committed to providing faster, smoother and better travel experience to millions of private vehicle drivers by reducing waiting time, reducing congestion and eliminating disputes at toll plazas,” he said.

FASTag is India's electronic toll collection system launched in 2016 by the National Highway Authority of India (NHAI). This RFID-based technology enables automatic toll payments without vehicles stopping at toll plazas, using prepaid tags affixed to windshields.

The system aimed to reduce traffic congestion at toll booths, eliminate cash transactions, improve transparency in toll collection, and enhance overall highway efficiency. FASTag became mandatory for all vehicles in February 2021, marking a significant digitization milestone in India's transportation infrastructure.

The initiative has achieved considerable success. Travel time at toll plazas decreased dramatically, with vehicles passing through in seconds rather than minutes. Digital transactions improved revenue collection and reduced leakage, while real-time traffic data helped optimize highway management. The system processed billions of transactions, demonstrating widespread adoption across India's extensive highway network.

However, FASTag faces criticism regarding technical glitches causing lane blockages, insufficient customer service for account-related issues, and privacy concerns over vehicle tracking. Some users report difficulties with recharging accounts and resolving billing disputes. Additionally, the transition period created confusion among users unfamiliar with digital payment systems.