NHAI to Compensate Toll Operators for Revenue Loss from FASTag Annual Pass Scheme

New Delhi, August 23: In a move to balance revenue losses faced by toll plaza operators following the rollout of the FASTag annual pass for private vehicles, the National Highways Authority of India (NHAI) has announced a uniform compensation mechanism applicable for a period of three months.

The annual pass, which became effective from August 15, allows non-commercial vehicles such as cars, vans, and jeeps to pass through up to 200 toll plazas annually for a one-time payment of ₹3,000. The pass can be activated within two hours of purchase through the Rajmargyatra app or NHAI's official website, and it is accepted at approximately 1,150 toll collection booths across the country.

In a circular issued by NHAI, the agency stated that toll contractors operating under existing agreements — as well as those bidding for new contracts in the next three months — will be compensated for the difference in toll collection revenue due to the introduction of the pass.

“This mechanism will be applicable to existing contract agreements and to bids invited over the next three months. After this period, annual pass data from each toll plaza will be made available to future bidders, who will be expected to factor this into their proposals,” NHAI said in the statement.

After the three-month transition period, no further compensation will be provided, as toll agencies will have access to accurate usage data and will be expected to quote bids accordingly.

The number of private vehicles utilizing the annual pass at each plaza will be determined through actual transaction data provided by the National Payments Corporation of India (NPCI) via the Indian Highways Management Company Ltd. (IHMCL).

The FASTag annual pass has received an “overwhelming response” from highway users, according to NHAI. It aims to provide convenience to frequent travellers and reduce congestion at toll plazas, while also streamlining digital toll payments.

In FY 2024–25, NHAI collected a total of ₹72,931 crore in toll revenue. The introduction of this annual pass is part of broader efforts to enhance digital infrastructure and transparency in toll collection across India’s national highway network.