MoRTH notifies FASTag-based annual local pass

Priced at ₹1,500 or ₹3,000, depending on the toll plaza’s location, the pass offers eligible residents within a 20 km radius unlimited crossings at a designated plaza for a year, as barrier-less tolling makes formal passes more important.

The Centre has introduced an annual toll pass for eligible residents living within 20 km of national highway toll plazas, offering unlimited crossings at a designated plaza for up to ₹3,000 a year. The move addresses a longstanding limitation of the existing monthly pass and comes as the rollout of barrier-less tolling makes informal arrangements for local commuters harder to sustain.

The ministry of road transport and highways (MoRTH) on Monday notified amendments to the National Highways Fee (Determination of Rates and Collection) Rules, 2008, introducing a FASTag-based annual local pass at two rates: ₹1,500 where a toll plaza is outside municipal or local town limits, and ₹3,000 where it falls within those limits.

The new pass supplements the existing monthly pass, priced at ₹350, which eligible residents using non-commercial private vehicles such as cars, jeeps and vans have had to renew every month. Mint reported on 8 October that MoRTH planned to notify the annual local pass scheme.

A cheaper alternative

The annual pass could reduce toll expenses for residents who repeatedly cross the same plaza. At ₹3,000 a year, it costs nearly 29% less than paying ₹350 every month, or ₹4,200 annually. The ₹1,500 slab offers a larger saving.

The pass will allow unlimited crossings for one year, but only at the specific toll plaza selected during registration. It is not a nationwide pass and cannot be used at other plazas.

A MoRTH official said the scheme followed several representations highlighting shortcomings in the monthly pass system and calling for an annual option for local residents.

The new local pass is similar to the existing ₹3,075 annual FASTag pass, which allows personal vehicles up to 200 toll-plaza crossings on eligible national highways. Any revenue loss to highway concessionaires from the local pass will be compensated by MoRTH, on the same lines as under the existing annual pass scheme, the official said.

“It’s a very good initiative that should facilitate local residents who have to frequent a small stretch of national highways for their regular work. It will also help in fast-tracking implementation of a barrier-less MLFF system,” said Vaibhav Dange, an independent infrastructure expert.

More than 10 million users have subscribed to the ₹3,075 annual FASTag pass, demonstrating strong demand for simplified, discounted tolling arrangements. India has around 110 million FASTag users, according to government data.

Higher stakes

The annual local pass is also intended to address challenges arising from the rollout of Multi-Lane Free Flow (MLFF) tolling. Under the earlier system, some local residents crossed toll plazas informally, relying on familiarity with booth staff instead of obtaining formal passes. That arrangement is not possible under MLFF, which allows vehicles to pass through toll points without stopping at conventional booths or requiring human intervention at the toll point.

Officials found that residents within 20 km of toll plazas accounted for a significant share of e-notices issued for unpaid tolls. The annual local pass is intended to address this problem as well. Residents who regularly use a designated plaza must purchase the pass; otherwise, an e-notice may require payment of double the toll amount.

MLFF is currently operational at six toll plazas: Choryasi, Mundaka, Daulatpura, Gharaunda, Manoharpur, and Shahjahanpur.

The National Highways Authority of India (NHAI) has expanded its digital FASTag local-pass facility to about 300 toll plazas, allowing eligible residents to obtain monthly passes online through the Rajmargyatra mobile app. The digital facility will now be extended to annual local passes at these plazas.

Applicants, vehicles and FASTags must meet the applicable eligibility conditions. The system will verify the applicant’s address, vehicle details and linked FASTag before determining eligibility. Commuters can use the Rajmargyatra app to check whether their regular toll plaza is covered.

The notification also sets limits on access to the concession. The annual pass fee will be subject to revision by the central government every 1 April. The pass will not be available on national highways or expressways where tolls are collected under a closed user fee collection system. Nor will the concession be available where a service road or alternative road is available for the driver, owner or person in charge of the vehicle to use, the notification said.

The annual local pass scheme is part of the broader Digital India initiative. Its implementation has gained urgency with the expansion of MLFF tolling, which removes the human intervention that some local residents had relied on to cross toll plazas without formal passes.

About the Author

Subhash is the infrastructure editor at Mint and tracks the momentous developments taking place in the space that is fast changing the Indian landscape. He finds reporting to be a passion that provides the necessary adrenaline rush and keeps you going.