The FASTag Annual Pass Scheme, launched in June 2025 by Union Minister of Road Transport and Highways, Nitin Gadkari, marks a significant milestone in India’s efforts to enhance highway travel convenience. Tailored specifically for non-commercial private vehicle owners, this initiative aims to simplify toll payments and reduce traffic congestion at national highway toll plazas. With more people relying on personal transport for daily and intercity commutes, the scheme presents a cost-effective and efficient solution for frequent highway users.
What is FASTag
FASTag is an electronic toll collection (ETC) system operated by the National Payments Corporation of India (NPCI) in collaboration with the National Highways Authority of India (NHAI). Introduced in 2014 and made mandatory in 2021, FASTag uses Radio Frequency Identification (RFID) technology to automatically deduct toll charges when a vehicle passes through a toll plaza. The tag is affixed to the vehicle’s windscreen and linked to a prepaid account, eliminating the need for cash transactions and reducing wait times.
What the FASTag Annual Pass Scheme Offers
The newly introduced FASTag Annual Pass Scheme allows eligible private vehicle owners to purchase a prepaid pass for Rs 3,000, valid for one year or up to 200 trips, whichever comes first. Once activated, the pass provides free passage at all National Highway (NH) and National Expressway (NE) toll plazas under NHAI jurisdiction.
Here are the key benefits:
- Substantial cost savings: Regular toll users can save up to Rs 7,000 annually, as the average toll cost per trip drops to Rs 15.
- Time efficiency: Faster transit through toll plazas without stopping for payments.
- Streamlined process: Easy activation via the Rajmargyatra mobile app or the NHAI website.
How to Activate the Annual Pass
To avail of the scheme, users must:
- Ensure their FASTag is properly installed and linked to a valid vehicle registration number.
- Confirm the FASTag is not blacklisted or inactive.
- Make the Rs 3,000 payment through the Rajmargyatra app or official NHAI portal.
- After successful payment and verification, the pass is automatically activated.
How Trips Are Counted
Trip calculation is transparent and straightforward:
- For point-based toll plazas: Each passage through the plaza is one trip, meaning a round trip counts as two trips.
- For closed tolling systems (with entry and exit): Each entry-exit pair counts as one trip.
This method helps users track usage and manage their trips within the 200-trip limit.
Important Limitations and Exclusions
While the FASTag Annual Pass Scheme brings several advantages, it comes with specific conditions:
- Applicable only to non-commercial private vehicles such as cars, jeeps, and vans.
- Use on commercial vehicles will lead to automatic deactivation of the pass.
- The pass is valid only at NHAI-managed NH and NE toll plazas. It does not apply to tolls operated by state governments or private concessionaires under different terms.
Fee Revisions and Future Considerations
The Ministry of Road Transport and Highways (MoRTH) has also stated that the annual pass fee may be revised each year to align with inflation and infrastructure costs. Any updates will take effect from April 1 annually, ensuring the scheme remains financially viable while offering continued value to users.
A Step Towards Seamless Travel
The FASTag Annual Pass Scheme represents a progressive step toward modernising India’s highway infrastructure. By reducing toll-related bottlenecks and providing predictable, affordable travel for private vehicle owners, the government is setting a precedent for digitised, commuter-friendly solutions in public infrastructure.
As the number of private vehicle users continues to grow, especially in urban and semi-urban areas, this scheme has the potential to significantly ease the burden of frequent toll payments, improve traffic flow, and contribute to reduced vehicular emissions through less idling at toll booths.
For regular travellers, road trippers, and daily intercity commuters, the FASTag Annual Pass Scheme could be the much-needed change that makes every journey smoother and more economical.