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Is a Yearly FASTag Toll Pass on the Horizon? Let's Discuss What's Known So Far.

Government retracts plan for fifteen-year FASTag priced at Rs 30,000 per lifetime.

The government has scrapped a previous plan that aimed for a one-time FASTag fee of Rs 30,000 for a...
The government has scrapped a previous plan that aimed for a one-time FASTag fee of Rs 30,000 for a 15-year period.

Is a Yearly FASTag Toll Pass on the Horizon? Let's Discuss What's Known So Far.

India contemplates a new toll policy aimed at streamlining and reducing costs for highway commuters. As per the Times of India, the Ministry of Road Transport and Highways (MoRTH) is considering the implementation of a FASTag Annual Pass, priced at approximately Rs 3,000 for unlimited travel on national highways and expressways for an entire year. This change seeks to benefit frequent travelers by offering a cost-effective alternative to the existing recharge-based system, particularly for those with extensive travel itineraries.

The proposed policy envisioned a dual-payment system, granting users the choice between an Annual Pass and distance-based pricing. Under the Annual Pass option, a one-time FASTag recharge of Rs 3,000 would grant private vehicle owners toll-free passage across all national highways, state expressways, and expressways for a period of one year. In contrast, the distance-based pricing model, applicable for those who opt out of the annual plan, would charge a flat toll of Rs 50 per 100 km, replacing the current toll plaza fee structure.

The new system would utilize the existing FASTag infrastructure, necessitating no additional documents or installations. Interestingly, a previously proposed plan suggesting a lifetime FASTag costing Rs 30,000 for 15 years has reportedly been withdrawn.

A key aspect of the policy is the intention to eradicate toll booths, replacing them with sensor-based digital toll collection systems to promote seamless travel. These systems would rely on GPS and automated vehicle tracking for toll deductions.

In addressing concerns of contractors and toll operators, the ministry proposes a government-approved compensation formula based on digital toll data. Furthermore, banks may be granted enhanced powers to prevent toll evasion, including the enforcing of minimum balance requirements on FASTag-linked accounts.

Implementation of the policy, if successful, could lead to reduced congestion, speedier travel, and decreased costs for long-distance road travel for regular commuters.

  1. The dual-payment system, as part of the new toll policy in India, allows users to choose between an Annual Pass for private vehicles, which costs approximately Rs 3,000 and offers toll-free travel on national highways for a year, and a distance-based pricing model where a flat toll of Rs 50 per 100 km will be charged.
  2. In an effort to modernize the toll collection system and eradicate toll booths, the proposed policy in India aims to replace them with sensor-based digital toll collection systems that utilize GPS and automated vehicle tracking for seamless travel and toll deductions, while also introducing a government-approved compensation formula for contractors and toll operators.

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