Government Introduces ₹1,500 Annual Highway Toll Pass for Residents Living Within 20 Kilometres of Toll Plazas

The Government of India has introduced a new concessional annual toll pass for eligible residents living within 20 kilometres of National Highway toll plazas, offering substantial relief to people who regularly use nearby highways for employment, education and other essential travel. Under the revised regulations, eligible owners of non-commercial vehicles will be able to obtain an annual local pass for ₹1,500 or ₹3,000, depending on the location of the toll plaza. The new arrangement will come into effect on 1 November 2026.

The Ministry of Road Transport and Highways announced the initiative on 27 October 2026 following the notification of amendments to the National Highways Fee (Determination of Rates and Collection) Rules, 2008.

The amendments, officially notified on 26 October 2026, introduce a new annual payment option for eligible vehicle owners residing near National Highway fee plazas.

The government stated that the measure is intended to improve the ease of living for local residents by reducing the financial burden associated with frequently crossing nearby toll plazas.

The new system will operate through FASTag and will provide an alternative to the existing monthly local-pass arrangement.

Annual Toll Passes Priced at ₹1,500 and ₹3,000

Under the revised provisions, the annual concession will depend on whether the National Highway toll plaza is located within or outside municipal or local town limits.

For toll plazas situated outside municipal or local town areas, eligible residents will be able to obtain the concessional local pass for ₹1,500 per year.

For toll plazas situated within municipal or local town limits, the annual charge will be ₹3,000.

The distinction is based on the location of the toll plaza rather than simply the residential classification of the applicant.

The concessional pass will be valid only at the specific fee plaza for which it is issued. It cannot be transferred to another toll plaza or used as a nationwide highway toll pass.

The government has also retained the option of revising the prescribed annual fees, with revisions taking effect on 1 April.

Significant Savings for Regular Highway Commuters

The new arrangement could provide considerable savings for eligible residents who regularly cross a nearby toll plaza.

Under the existing monthly local-pass arrangement, the fee cited in current reporting is approximately ₹360 per month, amounting to ₹4,320 over twelve months.

An annual pass costing ₹1,500 would therefore represent a potential saving of ₹2,820 compared with purchasing twelve monthly passes at that rate.

Similarly, an annual pass priced at ₹3,000 would provide a potential saving of ₹1,320.

These savings are particularly relevant to residents who cross nearby toll plazas frequently while travelling to workplaces, educational institutions, healthcare facilities and commercial centres.

For such commuters, recurring toll payments can contribute significantly to annual transportation expenditure.

The new annual option is intended to provide greater predictability in travel expenses while reducing the need for repeated monthly pass renewals.

The actual savings will depend on an individual’s existing toll arrangements, travel frequency and eligibility under the revised rules.

Eligibility Restricted to Residents Within 20 Kilometres

The concessional facility will be available to eligible owners of non-commercial vehicles who reside within a distance of 20 kilometres from the relevant National Highway toll plaza.

Applicants must have a valid and functional FASTag registered for non-commercial use.

The benefit is intended for private vehicle owners rather than commercial transportation operators.

Eligible residents may choose between continuing with the existing monthly local pass and obtaining the newly introduced annual concessional pass.

However, residence within the prescribed distance does not automatically guarantee eligibility.

The applicant and vehicle must satisfy the conditions specified under the amended National Highway fee rules.

The concession is also restricted to the designated toll plaza and will not provide toll-free passage through other National Highway fee plazas.

Concession Will Not Apply at Every Toll Plaza

The Ministry of Road Transport and Highways has specified important restrictions governing the new facility.

The concessional local pass will not be available on National Highways or expressways where toll collection operates under a closed user-fee collection system.

Under such systems, toll charges are generally linked to the distance travelled between designated entry and exit points.

The government has also excluded cases where a service road or an alternative road is available for use by the vehicle owner, driver or person responsible for the vehicle.

This provision is important because it means that not every resident living within 20 kilometres of a toll plaza will necessarily qualify for the concession.

Eligibility will depend on the applicable toll collection system, availability of alternative access and compliance with the prescribed conditions.

The Ministry has therefore introduced the annual facility as a targeted concession rather than a universal exemption from National Highway toll charges.

New Facility to Begin on 1 November 2026

The revised rules will become effective on 1 November 2026.

According to the Ministry of Road Transport and Highways, the annual local pass will be available at eligible National Highway toll plazas from that date.

The government has also announced that the facility will become available through the Rajmargyatra mobile application from 1 December 2026.

This phased arrangement will allow eligible residents to access the concession at participating toll plazas before the planned introduction of the application-based service.

Rajmargyatra is an official National Highways Authority of India digital platform designed to provide information and services to National Highway users.

Its existing services include highway-related information and facilities associated with FASTag-based local passes.

The addition of the new annual concession is expected to provide another digital option for eligible local commuters.

FASTag Remains Essential for the New Concession

FASTag is an electronic toll collection system that uses Radio Frequency Identification technology to enable automatic payment of highway toll charges.

The system allows toll payments to be processed through electronic identification without requiring conventional cash transactions at toll booths.

The new concessional local pass will operate through vehicles equipped with valid and functional FASTags registered for non-commercial purposes.

The government has stated that more than 13 crore FASTags have been issued across India, reflecting the widespread adoption of electronic toll collection.

Using the existing FASTag infrastructure for the annual local pass is expected to support the administration of the concession without requiring a completely separate toll payment system.

The arrangement also fits within the government’s broader efforts to increase digitalisation and simplify services for National Highway users.

Amendment to National Highway Fee Rules

The new concession has been introduced through the National Highways Fee (Determination of Rates and Collection) (Fifth Amendment) Rules, 2026.

The notification was issued by the Ministry of Road Transport and Highways on 26 October 2026 under the powers conferred by the National Highways Act, 1956.

The amendment modifies Rule 9 of the National Highways Fee Rules, 2008, by introducing a provision for the annual concessional local pass.

The revised framework allows qualifying non-commercial vehicle owners residing within 20 kilometres of a fee plaza to choose between the existing monthly pass and the new annual concession.

The regulations also establish the applicable annual charges, restrictions on validity and circumstances in which the concession cannot be issued.

The notification provides the legal basis for implementing the arrangement from 1 November 2026.

Improving Affordability for Communities Near National Highways

The introduction of the annual local pass addresses a practical concern faced by communities living near National Highway toll plazas.

National Highways frequently pass through populated regions where residents depend on the road network for daily travel between neighbouring towns, villages and commercial centres.

In such locations, residents may need to cross a toll plaza repeatedly even when travelling relatively short distances.

Although the existing monthly local-pass facility provides concessions for eligible users, annual travel expenses can remain substantial for households making frequent journeys.

The new annual payment option is intended to reduce this recurring expenditure while preserving the existing framework of eligibility and toll collection.

Its financial benefits could be particularly relevant to salaried employees, students, small business owners and other residents who depend on regular highway travel using private vehicles.

The measure also provides greater flexibility by allowing eligible commuters to select the monthly or annual arrangement most appropriate to their travel requirements.

A Step Towards More Affordable Highway Travel

The introduction of concessional annual toll passes represents a significant public-service initiative aimed at reducing travel expenses for communities located near National Highway fee plazas.

With annual charges beginning at ₹1,500, the new arrangement offers an alternative to repeated monthly payments for eligible residents.

The requirement for a valid FASTag, the 20-kilometre residential limit and the restrictions concerning alternative roads and closed toll collection systems will determine the scope of the benefit.

The facility will become operational at eligible toll plazas from 1 November 2026, with digital access through the Rajmargyatra application scheduled to follow on 1 December.

The measure forms part of the government’s continuing efforts to improve highway user services, expand digital toll collection and make essential road travel more affordable for qualifying local communities.

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References

1. Ministry of Road Transport and Highways – Press Information Bureau, 27 October 2026

Government of India Introduces Concessional Local Pass for National Highway Users Living Near Fee Plazas.

https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2329077&lang=1&reg=3

2. Ministry of Road Transport and Highways – Gazette Notification, 26 October 2026

National Highways Fee (Determination of Rates and Collection) (Fifth Amendment) Rules, 2026.

https://www.gazettetracker.com/g/CG-DL-E-26102026-277435

3. National Highways Authority of India – Official Rajmargyatra Portal

FASTag Local Pass Information and Eligible Toll Plazas.

https://rajmargyatra.nhai.gov.in/buy-fastag-local-pass

4. Press Information Bureau – 18 August 2026

NHAI Extends Digital FASTag Local Pass Facility to 121 Toll Plazas Across the Country.

https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2300851

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