The 20 km highway discount: Who qualifies for the new Rs 1,500 vs Rs 3,000 annual toll pass?

In addition to this, there have been changes made in the annual toll pass policy starting November 1, 2026, providing local residents residing up to a 20-km range from the toll plazas on the national highways with cheaper rates for travel through the toll plazas.

Notified under the National Highways Fee (Determination of Rates and Collection) Fifth Amendment Rules, 2026, these amendments to the 2008 regulation are aimed at reducing daily commuting costs for the locals.

Fee rates and requirements

Union Minister Nitin Gadkari reported on his account on X that the objective behind this new move is to provide easier commuting for locals using the highway network.

Eligibility requirement: Restricted to the owners of private, non-commercial vehicles residing up to 20 kilometers from any designated toll plaza with a working FASTag.

Plazas outside municipality boundaries (Rs 1,500): The vehicles that have a connection with a toll plaza that is situated out of the municipality/local town boundary can get a local annual pass for Rs 1,500.

Plazas within municipalities boundaries (Rs 3,000): If a vehicle has an association with a toll plaza that is inside the municipality, then the annual pass cost for such vehicles will be Rs 3,000.

Annual rate review: The rates will stay constant until any possible revision on April 1 of each fiscal year.

Important exceptions and limitations

The annual local pass shall be applicable only to certain selected toll points and is not available to cover all points of the National Highway network.

Closed user fee network: The discounting rule does not apply to the closed loop expressways and highways having a closed user fee collection network.

Service roads: Plazas that have adjacent service roads or alternate local routes shall be outside the purview of this discount scheme.

Vehicle restrictions: Transport companies, taxis, and heavy transport vehicles shall not qualify for the local pass rate discount scheme.