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FASTag Barrier-Free Toll Collection Targeted by 2026, Over 40 Lakh Passes Issued Since August

Written by: Team Angel OneUpdated on: 19 Dec 2025, 8:24 pm IST
Over 40 lakh FASTag passes issued since August; seamless tolling system to allow 80 km/h speed by 2026, as per Nitin Gadkari.
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India is making progress towards implementing a barrier-free toll collection system on highways by 2026. Since August, more than 40 lakh FASTag passes have been issued, aiming to enhance highway commuting efficiency and transparency across the country. 

Multi-Lane Free Flow System to Enable Seamless Commute 

Union Minister Nitin Gadkari stated that by the end of 2026, India's highways will adopt a multi-lane free flow tolling system allowing vehicles to move at speeds up to 80 km/h.  

The new barrier-free system aims to replace the current method of stopping at toll plazas, thereby upgrading the toll collection framework.  

Currently, vehicles use FASTags to stop at toll gantries for fee deductions but the upcoming system will automate this using artificial intelligence-based solutions across 1,050 plazas. 

These include 350 privately operated and 700 government-run booths. The initiative is projected to save fuel worth ₹1,500 crore annually and increase toll revenue by ₹6,000 crore. 

Annual FASTag Pass Issued for 200 Toll Plazas 

Since August 15, over 40 lakh annual FASTag passes have been issued. The pass is available to private four-wheelers at a cost of ₹3,000 yearly and provides access to 200 designated toll plazas.  

However, it requires an activated FASTag and does not offer nationwide coverage at all toll points. 

Read More: AI-Based Digital Toll Collection Across India by 2026-End, Says Nitin Gadkari! 

Policy Integration with Vehicle Registration and Compliance 

To further support toll enforcement, the government is introducing an integrated system. Vehicle owners will be required to pay outstanding toll dues and e-challans in order to either finalise a vehicle sale or renew registration. This is expected to streamline traffic fines and toll recovery concurrently. 

Road Construction and Automotive Market Goals 

Gadkari also informed that the highway construction target has been set at 60 km per day. Additionally, he emphasised aspirations in being amongst top global automobile markets, pointing out India's current standing at ₹22 lakh crore, compared to the US at ₹78 lakh crore and China at ₹47 lakh crore. The minister highlighted the importance of supporting agriculture to further boost GDP. 

Conclusion 

The issuance of over 40 lakh FASTag passes since August and the upcoming AI-based toll collection system mark significant steps in transforming India's highway infrastructure. The Ministry's push towards improving commuter convenience while enhancing fiscal efficiency is evident through these measures. 

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

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Dec 19, 2025, 2:54 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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