Private vehicle owners living near National Highway toll plazas will soon enjoy the benefit of annual pass payment under a new arrangement of a concessional annual pass policy introduced by the Central Government. The new policy will be implemented on November 1, 2026, for people who frequently pass through a toll plaza in the vicinity for work, business or other personal purposes.
The amendment introduces the National Highways Fee (Determination of Rates and Collection) (Fifth Amendment) Rules, 2026, which are based on the current National Highways Fee Rules, 2008. The new provision enables eligible vehicle owners to purchase the monthly pass or Concessional Local Pass. It will be affordable for people living near toll plazas and crossing the same road over and over again.
There is a set of conditions for the scheme, and just a driver living within the distance would not automatically be eligible. The concession also applies to a particular toll plaza where the pass is issued. It cannot be used as a nationwide toll pass or to obtain discounted access at other toll plazas.
National Highway Toll Pass: Annual Fees
The government has introduced two annual fees based on where the toll plaza is located inside or outside municipal or local town limits. Toll plazas in municipal or local town limits will be charged ₹3,000 per year, while toll plazas outside municipal or local town limits will be charged ₹1,500 per year.
These rates will be effective from November 1, 2026, and the notification also allows the Central Government to revise the charges on April 1. The amount will be determined by the location of the toll plaza and not just the town or village where the vehicle is located. The drivers should verify the classification of the toll plaza they are driving by before applying for the pass.
The new annual pass would be much cheaper for eligible local commuters than the monthly pass. At present, if a commuter pays a local pass for ₹360 per month, then ₹4,320 over 12 months would be the cost. The new regime allows an eligible resident to pay ₹1,500 or ₹3,000 annually depending on the location of the toll plaza. The concession is also of interest for those who travel often along National Highways and do not have a practical alternative route.
Who is eligible for the Concessional Local Pass?
Under the new rules, the scheme will be applicable to mechanical vehicles registered for non-commercial purposes that reside within 20 kilometres of the respective fee plaza. The vehicle must have a valid and functional FASTag registered for non-commercial purposes. Those owners who are eligible to use such a facility are entitled to a concessional annual pass for commuting to that toll plaza under the other conditions mentioned in the notification.
📢 Live Within 20 km of a Toll Plaza? Know the New Local Pass Rules! The Government of India has introduced a Concessional Local Pass for eligible private vehicle owners residing within 20 km of a National Highway fee plaza, effective 1 November 2026, under the National Highways Fee (Determination of Rates and Collection) (Fifth Amendment) Rules, 2026. Eligible vehicle owners with valid, functional FASTags registered for non-commercial use can opt for an annual pass for the specific toll plaza at the following rates: 🛣️ ₹1,500 per annum for toll plazas outside municipal or local town limits. 🏙️ ₹3,000 per annum for toll plazas within municipal or local town limits. The pass is subject to specified conditions. It will not be available on National Highways or Expressways using a closed user fee collection system, or where a service road or alternative road is available for use. 📄 Read the official notification for complete details: https://t.co/khgErWhgtT @PMOIndia @MORTHIndia @PIBMoRTH #NHAI #BuildingANation
— NHAI (@NHAI_Official) October 27, 2026
The FASTag requirement is very important because the concession is associated with the qualifying vehicle and its electronic toll payment system. Commercial vehicles are not allowed to use it because in the new rules it is only vehicles which are registered for non-commercial purposes. The applicants should verify the required certification and pass-issuance process, and the eligibility for payment shall be verified before any payment is made.
Where will the New Toll Pass not be available?
The rules also specify that the concessional pass will not be issued. The facility will not apply to National Highways or expressways where tolls are collected in a closed user fee collection system. The concession will not exist if the vehicle owner, the driver or the person driving the vehicle is available for use and there is a service road or other road.
This means that even the people living within the 20-kilometre radius will not be eligible if one of these exclusions is applicable to their journey. The distance requirement is therefore only part of the eligibility criteria. Motorists should check the road conditions and toll arrangements, instead of assuming that proximity to a toll plaza will allow them to get the discounted pass.
The new scheme would be particularly useful to residents who always use a single toll plaza on the National Highway and want to manage their annual travel expenses. The vehicle owners need to certify to the Department that their vehicle is registered for non-commercial use, their FASTag is valid and functional, the toll plaza falls under the applicable fee category and there was no specific reason for them to not apply.
And they need to know that the pass is valid only for the toll plaza they chose. With new rules going into effect on November 1, 2026, commuters will be able to check the official notification and the toll-plaza arrangements to see how the scheme will be used on their journey.
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