Centre plans toll exemption via FASTags for armed forces’ private vehicles

Transitioning from physical ID verification to barrier-less tolling leaves defence personnel at risk of automated toll penalties without a digital pass framework.

The Centre plans to grant toll exemptions to the private vehicles of 1.4 million active defence personnel to resolve a unique challenge with barrier-less highway tolling—where e-challans are being issued to armed forces personnel using private vehicles on highways equipped with multi-lane free flow (MLFF) systems.

The ministry of road transport and highways (MoRTH) has initiated discussions with the defence ministry to develop a mechanism allowing free pass to these private vehicles without disrupting traffic flow. One proposal involves equipping such vehicles with FASTags, with the annual pass cost reimbursed by the defence ministry. However, people aware of the development said discussions remain inconclusive over who should bear the expense of the pass. Another option under consideration is a differentiated FASTag that records vehicle movement but does not deduct toll charges.

The move is aimed at preventing delays in the nationwide rollout of MLFF, which is expected to cover the country’s entire network of about 1,150 toll plazas by the end of FY28. MoRTH had earlier indicated that the system could be available across almost the entire toll plaza network by the end of this year. However, fewer than 10 toll plazas currently have MLFF, while bids have been invited for over 100 more. The ministry expects another 300-400 toll plazas to be bid out by the end of the current financial year.

Under the existing system, private vehicles of armed forces personnel can claim exemption from toll payments by displaying their identity cards at toll plazas. However, with MLFF eliminating physical barriers and manual verification, vehicles without a digitally recognized exemption risk receiving e-challans for unpaid tolls.

The issue has already surfaced on highway stretches where MLFF has been introduced, with e-challans being issued to armed forces personnel using their private vehicles under the existing exemption arrangement, the people said.

“We are testing the technology and want to resolve issues like these before the system becomes available nationally,” a government official said, requesting anonymity.

Queries emailed to MoRTH and the defence ministry remained unanswered till press time.

Toll-exempt FASTags

In May, Mint reported that MoRTH was exploring dedicated FASTags for toll-exempt vehicles, including armed forces personnel, to ensure their movements are digitally recorded without triggering toll deductions or penalties.

Under the proposed arrangement, official armed forces vehicles could be recognised through their special number plates, with movement data subsequently deleted for security reasons. Private vehicles used for official purposes, however, present a more complicated challenge because their ownership and use may not be directly linked to government departments.

Former road transport and highways and defence secretary Giridhar Aramane said the ministry could either integrate vehicle details into its database or issue special FASTags with unlimited free movement. An alternative would be to allow regular FASTags, with toll payments reimbursed by the respective departments.

“MoRTH may authorize the ministry of defence to issue a certain number of FASTags as agreed between them. Those shall be free of cost as they will be used for official purposes. This will make the entire system more efficient,” Aramane said.

Cost of exemption

The financial implications of the proposed arrangement could be substantial. India’s armed forces have about 1.4 million active personnel across the army, navy and air force. However, the number of private vehicles eligible for toll exemptions is not publicly available.

If the government were to extend the existing FASTag annual pass to several million eligible vehicles, the cost could run into a few hundred crore rupees annually.

The annual pass costs ₹3,075 for 2026-27 and allows eligible non-commercial vehicles to cross national highway and expressway toll plazas up to 200 times in a year without additional payments. At ₹3,075 per vehicle, the annual cost would be ₹307.5 crore for one million vehicles, for instance. The final expense would depend on the number of eligible vehicles and the terms of the exemption framework.

Kuljit Singh, partner and national infrastructure leader at EY India, said the arrangement would be important for ensuring smooth movement, particularly in border areas and around major defence office clusters. “This is a welcome development, as it is important for ensuring smooth movement, particularly in border areas and around major defence office clusters, such as the Western Command Headquarters,” Singh said.

“This will also strengthen the overall efficiency of the MLFF system by ensuring better coordination between tolling infrastructure and defence-related exemptions, without compromising the objective of barrier-less travel,” he added.

Technology and enforcement

MLFF uses overhead gantries equipped with automatic number plate recognition cameras and radio-frequency identification readers to identify vehicles and deduct toll charges from linked FASTag accounts.

The system allows vehicles to travel at highway speeds without stopping, eliminating physical toll plazas and manual intervention. However, it also requires a reliable digital identification framework for exempt vehicles to prevent erroneous penalties and ensure compliance.

Amit Shankhdhar, co-founder and director of logistics company Shakti Enterprise, said differentiated FASTag identifiers could help ensure uninterrupted traffic flow while maintaining a digital record of exempt vehicle movements.

Another sector expert pointed out that embedding exemption status at the FASTag or backend account level could eliminate manual verification and improve tolling efficiency. Accurate identification, periodic validation, prevention of cloned or misused FASTags, and real-time database synchronization would be critical to ensure the system’s credibility, he said.

The proposed framework is expected to be worked out before MLFF is expanded nationally, as the government seeks to balance the statutory exemptions available to armed forces personnel with the integrity of its digital tolling system.

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.