New FASTag-Based Annual Pass

Source:  HT

Context: Union Minister of Road Transportation announced that the new FASTag-based annual pass will roll out on August 15, offering smoother toll payments and reduced congestion for private vehicles on national highways.

About New FASTag-Based Annual Pass:

  • What is FASTag?
    • An electronic toll collection system that allows vehicles to pay highway tolls automatically using RFID-based technology, avoiding stops at toll booths.
  • Launched in: Pilot in 2014 on the Ahmedabad-Mumbai corridor
  • Mandatory Since: February 15, 2021 for all four-wheelers
  • Ministry Involved: Ministry of Road Transport and Highways (MoRTH)
  • Implementing Agency: National Highways Authority of India (NHAI)
  • Working Principle:
    • FASTag is a RFID-enabled sticker fixed to a vehicle’s windshield.
    • Linked to a prepaid wallet or bank account.
    • Toll amount is auto-deducted as the vehicle passes a toll plaza.
  • Key Features of FASTag:
    • Cashless & Contactless Tolling: Enables automatic toll payments through RFID scanning, eliminating the need for cash transactions or stopping at toll booths.
    • Reduced Congestion & Fuel Savings: Speeds up vehicle movement at toll plazas, cutting idle time and reducing fuel wastage.
    • Boosts Digital Transactions: Encourages a fully digital toll payment ecosystem, aligned with India’s Digital India vision.
    • Vehicle-Specific & Non-Transferable: Each FASTag is uniquely linked to a particular vehicle and cannot be transferred or used across multiple vehicles.
    • Multiple Channels for Purchase: FASTags are widely available via authorised banks, e-commerce platforms, mobile apps, and NHAI outlets, making it easy for users to obtain and recharge.

About FASTag-Based Annual Pass:

  • What is it?
    • A prepaid toll passes worth ₹3,000 for non-commercial private vehicles such as cars, jeeps, and vans.
  • Key Features:
    • Validity: 1 year from activation or 200 highway trips, whichever is earlier.
    • Activated via Rajmarg Yatra app and NHAI/MoRTH websites.
    • Reduces toll payments in short stretches (within 60 km gaps between toll plazas).
    • Lowers waiting time, congestion, and disputes at toll booths.
    • Aims to simplify highway travel for frequent private vehicle users.