Annual Toll Pass to Offer to 80 Percent Savings for National Highway Users

morly
2 Min Read



Chennai: The proposed rollout of FASTag-based annual pass for private non-commercial passenger cars will help users save 80 per cent on National Highway toll payments.

The Ministry of Road Transport and Highways (MoRTH) had recently announced a toll pass for non-commercial passenger vehicles at Rs 3,000, valid for one year or 200 trips across national highway (NH) toll plazas, effective August 15, 2025.

The analysis of over 950 toll plazas spanning over 51,000 Km of National Highway by CareEdge Ratings revealed that the weighted average toll fee stands at Rs 80 per trip or Rs 1.60 per km for car users.

However, with the proposed annual toll pass mechanism of Rs 3,000 valid for 200 trips, the effective toll fee per trip per toll plaza shall drop to Rs 15 per trip irrespective of the tollable length, leading to estimated weighted average rate of Rs 0.30 per km, which will lead to 80 per cent savings in toll payable for users.

“This move could reduce effective toll rates for non-commercial car users by 80 per cent from Rs 1.60 per km to just Rs 0.30 per km, marking a major affordability shift for frequent national highway users,” said Maulesh Desai, Director, CareEdge Ratings. According to CareEdge, one trip will be considered as crossing of one toll plaza.

As per the data of National Payments Corporation of India (NPCI), the FASTag toll collection across India stood at Rs 73,000 crore for FY25. A sample of 5,000 km of NH toll-roads data indicates passenger cars account for roughly 30 per cent of traffic and contribute 20 per cent of toll revenues.

CareEdge estimates 7-8 per cent impact in toll revenue for the sample project length of 5000 km considering 20 per cent contribution of cars in toll revenue with an assumption of 50 per cent private passenger vehicle and 75 per cent user adoption rate.



Source link

[ad_3]

[ad_4]

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *