NHAI to pay toll operators for revenue loss due to FASTag Annual Passes

Toll operators will receive compensation from NHAI for revenue lost due to the FASTag Annual Pass, effective August 15; the pass is valid for one year or up to 200 toll crossings

The National Highways Authority of India (NHAI) has announced a compensation plan for toll operators to offset the revenue impact of the recently launched FASTag Annual Pass, according to a report by The Economic Times. The new pass, available only for private vehicles, came into effect on August 15 and is aimed at making travel on national highways faster and more convenient.

 

According to NHAI’s latest policy circular, toll operators will be compensated for any revenue shortfall for three months beginning August 15. This relief will apply only to a maximum of two one-way annual pass transactions per vehicle per day at a single toll plaza, even if the same vehicle crosses multiple times, the report said.

 

The authority explained that the compensation will be calculated by multiplying the number of vehicles with an active annual pass by the applicable toll fee for private vehicles at a given plaza. For return journeys, the rate will be considered as 1.5 times the normal user fee.

 

The system will be reviewed after three months, or earlier if needed, and will apply to both existing and new contract agreements during the period.   

 

Estimated financial impact

 

Industry estimates suggest that the annual pass could cost NHAI up to Rs 3,000 crore per year, depending on the number of users. Around 3–4 per cent of passenger cars are expected to opt for the scheme, out of the 10–12 per cent of private vehicles that regularly use toll plazas, the report said.

 

In FY25, NHAI collected Rs 72,931 crore in toll revenue. The authority awards contracts to user fee collection agencies through a bidding process, with these agencies later remitting the toll revenue to NHAI.

 

Features of FASTag Annual Pass

 

The Ministry of Road Transport and Highways (MoRTH) introduced the FASTag Annual Pass on Independence Day to simplify highway travel for non-commercial private vehicle owners.   

 

  The pass is valid for one year from activation or for up to 200 crossings at toll plazas, whichever comes earlier. Once it expires, owners need to reactivate it by paying a separate fee. The government has priced the pass at Rs 3,000.

 

The pass will allow “seamless travel across highways without the hassle of frequent top-ups”. However, users must ensure their FASTag wallets maintain a minimum balance, or the tag could be blacklisted.