Residents who live near a National Highway toll plaza are about to get a cheaper way to pass through it. The government will introduce a concessional annual FASTag pass for eligible non-commercial vehicle owners living within 20km of a toll plaza, starting November 1, 2026.

The pass costs Rs 1,500 a year at toll plazas outside municipal or local town limits. At plazas within those limits, it costs Rs 3,000. For comparison, the standard FASTag annual pass costs Rs 3,075 in 2026-27. For someone who crosses the same plaza every day, that gap is the difference between a routine commute and a recurring expense they can finally cut back on.

The rules that were notified

The Ministry of Road Transport and Highways notified the scheme on October 26 under the National Highways Fee (Determination of Rates and Collection) (Fifth Amendment) Rules, 2026. The notification sets out who qualifies, where the pass works, and what it costs.

To qualify, a vehicle owner must live within 20km of the toll plaza. The owner must also have a valid, functional FASTag registered for non-commercial use. Commercial vehicles are not part of this scheme.

The fine print matters here. The pass is valid only at the designated toll plaza. It cannot be used at any other plaza, even one close by on the same route.

The pass will be valid only at the designated toll plaza and cannot be used at other plazas.

The scheme also carves out several situations. It will not apply to National Highways or expressways that use a closed user-fee collection system. It will be unavailable at toll plazas where a service road or alternative road is available for commuters. Drivers who expected the discount on every highway they use should check the plaza type before they buy.

How much it costs and when it starts

The annual fee splits into two tiers based on location. Plazas outside municipal or local town limits charge Rs 1,500 for the local pass. Plazas inside those limits charge Rs 3,000. Both figures sit below the standard annual pass.

Eligible vehicle owners do not have to take the annual option. They can choose between the concessional local pass and the existing monthly pass, depending on which suits their travel pattern.

Sales begin in stages. The pass will be available at eligible toll plazas from November 1, 2026. It will also be available through the Rajmargyatra app from December 1, 2026, which gives drivers a digital route to buy it without visiting the plaza counter.

The government may revise the fees every year. Any changes will take effect from April 1. Drivers should therefore expect the figures to be reviewed annually rather than locked in permanently.

Why this matters for everyday drivers

For people who live beside a highway toll plaza, the toll is not an occasional cost. It is a fixed part of getting to work, dropping children at school, or running errands. A pass priced at Rs 1,500 a year in non-town areas changes that calculation sharply for anyone who uses the same plaza often.

The biggest win goes to drivers who cross the same plaza several times a week. Their savings compound over the year, and the pass removes the need to keep paying single-trip charges that add up quickly. The scheme rewards repeat local use, which is exactly the group the government has targeted.

The restrictions are just as clear. The pass works only where the rules allow it, and only at the plaza it is tied to. Anyone who travels through several plazas will need to weigh whether the local pass fits their route or whether the standard option makes more sense.

What drivers should do next

Drivers who live within 20km of a National Highway toll plaza should first confirm that their plaza is eligible. The exclusions for closed user-fee systems and plazas with a usable service road are the points most likely to catch people out.

Next, check that the FASTag is valid, functional, and registered for non-commercial use. The pass depends on that registration, so an inactive tag will block the purchase.

Finally, compare the local pass with the monthly option. The right choice depends on how often you pass through the plaza. Frequent local users stand to gain the most from the annual concession, while occasional users may find the monthly pass a better fit.

The rollout is set for November 1, 2026 at eligible plazas, with app access from December 1, 2026. Until then, the notified rules are the reference point for anyone planning to buy.