KKN Gurugram Desk | The Indian government has announced a new FASTag-based annual pass system that could help frequent highway travelers save up to ₹7,000 annually. This move aims to reduce toll expenses and make road travel smoother for private non-commercial vehicle owners.

Union Minister for Road Transport and Highways Nitin Gadkari officially introduced the FASTag Annual Pass during a press conference on Wednesday. The new policy, set to be effective from August 15, 2025, is part of the Centre’s broader push to digitize toll payments and provide cost-effective solutions to Indian motorists.

Here’s a complete breakdown of the FASTag Annual Pass 2025, including how it works, who it is for, how much you save, and whether it is mandatory.

 What is the FASTag Annual Pass?

The FASTag Annual Pass is a prepaid toll payment system that allows users to preload toll charges for the entire year (or up to a limit of 200 trips). For just ₹3,000, eligible users will be able to make 200 one-way toll crossings at any National Highway (NH) or National Expressway (NE) toll plaza.

This pass is valid for one year from the date of activation or until 200 trips are completed — whichever comes first.

 How Much Can You Save with the Annual Pass?

The key highlight of this new initiative is the potential savings. Let’s break it down with numbers:

• Average cost per toll trip without the pass: ₹50

• Total cost for 200 toll crossings without the pass: ₹10,000

• Total cost with the annual pass: ₹3,000

• Total savings: ₹7,000

Minister Gadkari explained that the new system effectively reduces the cost of one toll crossing to just ₹15, which is significantly lower than the standard toll charges currently applied.

 Who is Eligible for the FASTag Annual Pass?

Not everyone can benefit from this new plan. The pass has eligibility restrictions to ensure it benefits the right category of travelers.

Applicable For:

• Private non-commercial vehicles only (cars, jeeps, and vans)

• Registered under a valid vehicle registration number

• Linked to a working FASTag, properly affixed on the windshield

 Not Applicable For:

• Commercial vehicles

• Vehicles already under FASTag blacklist

• Vehicles using the pass for commercial purposes (if found, the pass will be deactivated without notice)

The Ministry of Road Transport and Highways (MoRTH) clarified that this annual pass is strictly intended for personal use, and any misuse will lead to immediate cancellation.

Is It Mandatory to Buy the Annual Pass?

No, purchasing the FASTag Annual Pass is not mandatory.

If you’re a casual highway traveler who rarely crosses tolls, you may not benefit from this pass. But if you frequently commute between cities or travel long distances, this annual pass can result in substantial toll savings over time.

According to the government’s clarification:

“Those who already have a valid FASTag are not required to purchase a new tag. The annual pass can be linked directly to the existing FASTag if eligibility conditions are met.”

How Will the Pass Be Activated?

The activation process is simple and digital-first. Here’s how it will work:

1. Visit the official FASTag issuing bank portal or app.

2. Go to the ‘FASTag Recharge/Plans’ section.

3. Choose the Annual Pass Plan.

4. Complete payment of ₹3,000 using UPI, Net Banking, or Credit/Debit Card.

5. Once paid, the plan will be activated and linked to your existing FASTag.

Make sure your FASTag is:

• Properly affixed on your windshield

• Not blacklisted

• Registered with valid vehicle documents

Where Can the Pass Be Used?

The FASTag Annual Pass is valid only on National Highways (NH) and National Expressways (NE) — across all toll plazas that accept FASTag.

Important Notes:

• The pass cannot be used on state toll roads, private expressways, or city-level toll checkpoints unless specified.

• It is also not transferable to other vehicles or FASTags.

This makes it ideal for those who frequently use the Delhi-Mumbai Expressway, Eastern Peripheral Expressway, Bangalore-Chennai Expressway, and other major NH corridors.

 What Does “200 Trips” Mean?

Each trip refers to one toll crossing in a single direction. So, if you cross a toll once going to your destination and once while returning, that will count as two trips.

The 200-trip limit allows for:

• 100 round trips

• Or any combination of single-sided toll usage until the limit is exhausted

Once you exhaust either the trip count or 365-day validity, you will need to either revert to standard toll rates or renew your annual pass.

 Why This Move Matters

This policy comes at a time when:

• Toll charges are steadily rising

• Daily commuters and intercity travelers are bearing higher travel costs

• Government wants to push for digital and seamless toll payments

By introducing this affordable annual pass, the central government aims to promote FASTag adoption, reduce congestion at toll booths, and offer cost-effective solutions for middle-class and upper-middle-class vehicle owners.

Nitin Gadkari’s Statement

Union Minister Nitin Gadkari stated:

“Indian highways are being modernized, and so should our toll systems. The new FASTag annual pass will help reduce the economic burden on regular travelers, especially those using private vehicles for work, family, or emergencies.”

He emphasized that the initiative would ensure hassle-free travel, improved toll lane efficiency, and more transparency in toll collection.

Where to Get Help or More Info?

For more information, users can:

• Contact their FASTag issuing bank’s customer care

• Visit https://fastag.ihmcl.com

• Contact MoRTH’s public grievance portal

The FASTag Annual Pass is a step toward smart mobility. With potential savings of up to ₹7,000 per year and simplified travel across national highways, it offers real value to regular commuters.

Whether you’re a daily office-goer or someone who often takes weekend road trips, this plan could be a game-changer for your travel budget. While not mandatory, it’s certainly a smart financial move for eligible vehicle owners.