A new local FASTag pass will allow eligible private vehicle owners living within 20 km of a toll plaza to pay a fixed annual fee instead of paying the applicable toll on every trip, with the facility scheduled to begin on November 1, 2026.
The Ministry of Road Transport and Highways has amended the National Highways Fee (Determination of Rates and Collection) Rules, 2008, to introduce the concessional pass for non-commercial vehicle owners who regularly use a particular toll plaza. The rules were notified through a gazette notification dated October 26, 2026.
Under the amended provisions, the annual fee will be Rs 1,500 if the toll plaza is located outside municipal or local town limits. The fee will rise to Rs 3,000 if the plaza falls within municipal or local town limits. The government may revise these rates each year from April 1.
To qualify, the vehicle owner must reside within 20 km of the specific toll plaza for which the pass is issued. The vehicle must also have a valid and functional FASTag registered for non-commercial use. The provision is intended for eligible private vehicles and does not extend to commercial vehicles.
The local pass will apply only to the fee plaza for which it has been issued. It will not provide a general exemption or concession at other toll plazas encountered on the same route. It will also not apply on a national highway or expressway where toll collection operates through a closed user fee collection system.
The rules further state that the concessional pass will not be issued where a service road or alternative road is available for use. This condition limits the facility to qualifying local movements rather than providing a blanket reduction for all journeys made by residents living near a toll point.
The change is significant for settlements and urbanising areas located around national highways, where residents may cross toll plazas during routine travel to nearby towns, workplaces, markets or public services. Under the existing per-trip system, the cost of frequent local movement can accumulate even when the journey is short. The new structure links eligibility to both residential distance and the location of the toll plaza within or outside municipal limits.
FASTag uses Radio Frequency Identification technology to deduct toll payments from a linked account while a vehicle passes through a toll lane. The tag is affixed to the vehicle’s windscreen. The new local pass will operate through the existing FASTag system, but its validity will be restricted to the designated plaza.
The local concession is separate from the existing FASTag annual pass for private cars, jeeps and vans. That pass provides free passage at designated national highway and national expressway fee plazas for one year or 200 trips, whichever comes first. Its charge is Rs 3,000 for the base year 2025–26, according to the information provided by the ministry.
The concessional local FASTag pass is scheduled to become available from November 1, 2026. Applicants will need to meet the residence, vehicle-use and FASTag conditions specified in the amended rules for the particular toll plaza.
