Government Proposes Annual Pass System to Replace Highway Tolls

In a bid to enhance operational efficiency and convenience for road users, the Indian government is planning to introduce an annual pass system to replace the existing toll collection mechanism on national highways. Union Road Transport and Highways Minister Nitin Gadkari announced the proposal during a Lok Sabha session on March 20, 2025.

The proposed system aims to streamline toll payments by offering commuters the option to purchase an annual pass for ₹3,000 or a lifetime pass for ₹30,000, valid for 15 years. These passes will be integrated with the existing FASTag system, ensuring a seamless transition without the need for additional devices or documentation.

The initiative is expected to reduce congestion at toll plazas, provide financial relief to frequent travelers, and create a sustainable revenue stream for the government. The Ministry of Road Transport and Highways is also exploring satellite-based tolling and Automatic Number Plate Recognition (ANPR) technologies for barrier-free toll collection.

Minister Gadkari emphasized the importance of toll charges for maintaining and developing road infrastructure, stating, “When you want good roads, you have to pay for them.” He also highlighted the government’s commitment to addressing issues related to toll plazas, including those located within municipal boundaries or spaced less than 60 kilometers apart.

The annual pass system is part of a broader effort to modernize India’s highway infrastructure, which includes the installation of Advanced Traffic Management Systems (ATMS) across 325 projects and the development of over 700 Wayside Amenities (WSAs) along national highways.

Stay tuned for more updates on this transformative initiative and its impact on road travel in India.

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