India Introduces Concessional Annual Toll Passes for Local Residents

The Ministry of Road Transport and Highways announced the introduction of a Concessional Local Pass for non-commercial vehicle owners residing within 20 kilometers of a National Highway toll plaza. Effective November 1, 2026, the initiative aims to lower daily commuting costs for residents accessing work, education, and healthcare.

Under the National Highways Fee (Determination of Rates and Collection) (Fifth Amendment) Rules, 2026, eligible vehicles with functional FASTags can purchase an annual pass for ₹1,500 if the plaza is outside municipal or local town limits, or ₹3,000 if it is within those limits. This represents a significant reduction from current monthly pass costs, which total ₹4,320 annually. Each pass is valid only at the specific plaza for which it was issued and is non-transferable.

The concession is unavailable on expressways using a closed user-fee collection system or in areas where alternative service roads are available for local commuters. The government will review these annual fees every April 1. While the scheme begins November 1, the passes will be available via the Rajmargyatra mobile application starting December 1, 2026.