(Prelims: Indian Economy) (Mains, General Studies Paper-3: Transport and Infrastructure (National Highway Development Road Transport Policy in India) |

Why in news?
Road Transport and Highways Minister Nitin Gadkari has announced a new scheme under which the government will launch a Fastag based annual pass.
What is Fastag Annual Pass Scheme:
- Fastag Annual Pass Scheme is a new government initiative, which will be implemented from 15 August 2025.
- Under this scheme, private vehicle owners will get a pass for ₹3,000 that will allow them to travel on national highways across the country without paying toll repeatedly.
Key Features:
Feature
|
Description
|
Cost of the Pass
|
₹3,000 (Three thousand rupees)
|
Beneficiaries
|
Only non-commercial private vehicles (such as cars, jeeps, vans)
|
Validity Period
|
The pass will be valid for one year or up to 200 trips (whichever is earlier)
|
Objective
|
To ensure seamless, faster, and economical travel on national highways
|
Implementation Date
|
Effective from 15th August 2025
|
What is the objective?
- Avoid frequent halts at toll plazas
- Address the problem of repeated payments at toll plazas within the 60 km limit
- Make travel faster, easier and hassle-free
- Promote digital toll collection
Ease and accessibility
- A dedicated link for activation and renewal of passes will soon be available on the following platforms:
- Highway Yatra App
- National Highways Authority of India (NHAI) website
- Official website of Ministry of Road, Transport and Highways
Thinking behind the policy
- This annual pass policy addresses long-standing issues related to toll plazas located within the 60 km limit, especially.
- Through a single payment mechanism:
- The toll collection system will be simplified.
- Electronic toll collection will be promoted under Digital India.
- There will also be environmental benefits, as emissions caused by vehicles waiting at tolls will be reduced.
What is Fastag?
- Fastag is an electronic toll collection system
- It has been developed by the National Highways Authority of India (NHAI).
- It is a sticker based on Radio Frequency Identification (RFID) technology, which is pasted on the front windscreen of the vehicle.
How does Fastag work?
- When the vehicle passes through the toll plaza, the RFID reader installed there scans the Fastag.
- The toll fee is automatically deducted from the Fastag account of the vehicle.
- The vehicle can pass through the toll gate quickly without stopping, saving both time and fuel.
Key features of Fastag:
Point
|
Description
|
Technology
|
RFID (Radio Frequency Identification)
|
Implementing Agency
|
National Highways Authority of India (NHAI)
|
Benefits
|
Cashless payments, reduced waiting time, fuel savings
|
Required Documents
|
Vehicle RC, KYC documents, photo of the vehicle owner
|
How to Recharge
|
Through mobile app, net banking, UPI, Paytm, Google Pay, etc.
|
Where to Buy
|
From banks, petrol pumps, MyFASTag app, NHAI website, etc.
|
Conclusion
This FASTag based annual pass policy strengthens the government's vision of a digital and accessible India. It is not just a facility but a comprehensive travel improvement plan that will save time, money and energy of millions of motorists.