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New Toll Policy Under Review: Unlimited Highway Travel for ₹3,000 a Year via FASTag

Written by: Team Angel OneUpdated on: 26 May 2025, 9:23 pm IST
Govt may allow unlimited toll-free highway travel for ₹3,000/year via FASTag. Distance-based charges of ₹50/100 km also proposed. Policy under review.
New Toll Policy Under Review: Unlimited Highway Travel for ₹3,000 a Year via FASTag
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The Ministry of Road Transport and Highways is reviewing a new toll policy that could allow FASTag users to travel unlimitedly on national highways and expressways by paying an annual flat fee of ₹3,000. The move aims to streamline toll collection, improve road travel efficiency, and reduce the hassle of frequent recharges. 

Two-Tier Payment Options for Flexibility 

The policy proposes two payment options for road users: 

  • Annual Plan: ₹3,000 for unlimited toll-free travel on all highways.
  • Distance-Based Plan: ₹50 for every 100 km travelled, designed for occasional users. 

FASTag users will be able to opt into the new system using their existing accounts, without needing to submit additional documentation. The transition is expected to be seamless, supporting widespread adoption. 

Lifetime FASTag Model Dropped 

The government has decided against the earlier proposed ₹30,000 lifetime FASTag plan for 15 years. Officials now consider the annual fee model more affordable and practical for most private vehicle owners. 

Revenue Security for Toll Operators 

To maintain revenue for private highway operators, the ministry is working on a data-driven compensation model based on actual traffic volumes. This ensures infrastructure partners are not adversely affected. 

Banks to Get Enhanced Powers Against Toll Fraud 

The upcoming policy is also expected to grant more enforcement authority to banks, including the ability to set minimum FASTag balances and detect misuse or evasion of toll payments. 

Also Read:IHCL Expands Presence in the Northeast with Taj Pushpabanta Palace. 

Conclusion 

If approved, this FASTag policy could transform highway travel in India, offering users a cost-effective, convenient way to access toll roads, while ensuring revenue continuity for operators. The policy is currently under review in 2025. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Published on: May 26, 2025, 3:53 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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