What is the FASTag annual pass scheme that Modi govt is planning to launch?

As per the Gazette Notification, a person who owns a mechanical vehicle registered for non-commercial purpose, having a valid and functional FASTag, shall be eligible to obtain a pass on payment of fee of Rs 3000 which shall be valid for one year or for two hundred crossings through any fee plaza on a national highway, whichever is earlier, irrespective of the fee leviable at each fee plaza.

In a written reply to Rajya Sabha, Union Minister Nitin Gadkari said that the Annual Pass will not be applicable to State Highways/Expressways as they don’t fall under the jurisdiction of Central Government.

“Provided that in a closed user fee collection system, entry and exit of a mechanical vehicle through a fee plaza shall be considered as a single crossing. The Annual pass is applicable on National Highway (NH) and National Expressway (NE) fee plazas,” he said.

The Union Minister also stated that there is expected to be savings for vehicle owners. ” besides reducing congestion at fee plazas, the actual savings for vehicle owners and the government’s revenue growth will depend on several factors including actual usage of vehicles and fee plaza crossings made in a year,” Gadkari added.

Earlier this month, the NHAI further streamlined its policy for the Toll Collecting Agencies and Concessionaires.