Government gets new discount price for FASTag in India: Here is everything you need to know

June 18, 2025 by News Desk

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The Indian government will roll out a new FASTag-based annual pass from August 15, 2025, priced at ₹3,000.

Announced by Road Transport and Highways Minister Nitin Gadkari, the pass will be available only for non-commercial private vehicles and will cover 200 trips or one year of travel across national highways—whichever comes first.

This new model, which will be activated via the Rajmarg Yatra app and the official websites of NHAI and MoRTH, is designed to reduce wait times, cut congestion, and ease friction at toll plazas. It is being positioned as a “seamless and cost-effective” solution to long-standing public grievances about toll plazas located within short distances.

However, the existing pay-per-trip FASTag system will continue to remain in place. The ₹3,000 annual pass is optional, not mandatory. For occasional or short-distance drivers, the traditional model may remain more economical, as ₹3,000 upfront could exceed what they currently spend on tolls in a year.

Last month, the government had also discussed a potential distance-based toll system—₹50 per 100 km—but it has not been operationalised. An earlier proposal for a ₹30,000 lifetime FASTag was scrapped.

India’s toll collections through FASTag saw a significant surge in recent years, reaching ₹64,810 crore in the financial year 2023–24, up from ₹54,068 crore in 2022–23. This sharp increase underscores the growing reliance on digital toll systems and the steady expansion of the national highway network.

With the government’s push for seamless travel and mandatory FASTag implementation, revenue from tolls is expected to continue rising in the coming years.

FASTag services are issued and managed by a mix of public and private financial institutions. Key players include the National Payments Corporation of India (NPCI), with banks and digital platforms like HDFC Bank, ICICI Bank, Airtel Payments Bank, and Paytm Payments Bank.

The newly introduced ₹3,000 FASTag annual pass is expected to further boost revenue for the government.