The government is launching a new FASTag-based annual pass costing Rs 3,000, announced Road Transport and Highways Minister Nitin Gadkari on X.

Starting from August 15, this pass will be available only for non-commercial private vehicles. It will be valid for one year from the date it is activated or up to 200 trips, whichever happens first.

The annual pass will help people travel affordably on National Highways in India. Government will soon initiate a special link to activate and renew the pass. The link will be made available on the Rajmarg Yatra App and the official websites of the National Highways Authority of India (NHAI) and the Ministry of Road Transport and Highways (MoRTH).

The policy aims to solve long-standing problems with toll plazas that are less than 60 km apart and makes paying tolls easier with just one affordable payment. The annual pass will offer smoother journey for private vehicle owners by cutting down wait times, reducing traffic jams, and lowering disputes at toll plazas.

The new system will continue using the existing FASTag infrastructure but plans to eventually replace toll booths with sensor-based systems that use GPS and vehicle tracking.

Earlier reports last month mentioned the government working on a new toll policy to make highway travel easier and cheaper for commuters. There were talks of two types of passes, including an annual one where a single FASTag recharge of Rs 3,000 would allow private vehicles to travel on national highways and state expressways for a year without extra toll charges.