Private Vehicles Get FASTag Relief at Rs 3,000 Annually. Will CVs Be Next?

The Ministry of Road Transport and Highways (MoRTH), under the leadership of Union Minister Nitin Gadkari, has announced a new initiative that aims to ease highway commutes for private vehicle owners in India. Starting August 15, 2025, private car owners can opt for an Annual FASTag Pass priced at Rs 3,000, a move expected to reduce toll booth delays and improve traffic flow across national highways.

While this initiative is a step forward for private commuters, it leaves a significant gap for commercial vehicles, which form the backbone of India’s logistics and transport ecosystem. Industry leaders are now raising a critical question: Where is the FASTag solution for commercial vehicles?

What is the FASTag Annual Pass?

The new Annual FASTag Pass, introduced on June 18, 2025, is designed to simplify toll payments for private vehicle users. For a one-time fee of Rs 3,000, users get up to 200 toll-free trips per year on national highways. The pass, which integrates seamlessly with the user’s existing FASTag, aims to cut long queues, reduce fuel wastage, and solve disputes at toll plazas, especially those situated within a 60-km distance from one another.

The Commercial Vehicle Challenge

While the new pass brings relief to private vehicle owners, it doesn’t address the needs of commercial vehicles like trucks, buses, and other freight carriers that dominate India’s roadways. These vehicles are frequent highway users, playing a pivotal role in the nation’s economy by ensuring the steady movement of goods and passengers.

"The FASTag pass will surely make it easier for private vehicles to cross toll booths on national highways regularly. But commercial vehicles also need a similar pass, to solve their toll-related problems too, since they use highways much more frequently than private cars," said Vinkesh Gulati, Former FADA President.

India has over 3.7 lakh commercial vehicles registered as of 2025. Despite making up only about 2% of the total vehicle population, medium and heavy-duty commercial vehicles contribute to nearly 45% of road transport emissions, highlighting the need for more efficient and sustainable solutions.

Economic and Environmental Stakes

According to the World Bank, commercial vehicles in India handle over 60% of the country’s freight transport and contribute approximately 7.1% to the GDP. These vehicles are vital to India’s economic machinery, from connecting rural hinterlands to urban markets, to facilitating industrial growth and ensuring timely delivery of essential goods.

"These vehicles are far more than just carriers of goods, they are essential engines of national progress. From linking remote villages to major cities, supporting industrial expansion, and ensuring timely delivery of goods across the country, the CV sector forms the backbone of India's supply chain. It is a key enabler in India's ambitious journey toward becoming a $5 trillion economy," said Harish Sabharwal, President of the All India Motor Transport Congress (AIMTC).

Industry Demands A Fair System

Despite their importance, commercial vehicles continue to face bottlenecks at toll plazas, leading to massive fuel wastage and logistical delays. Harish Sabharwal of AIMTC estimates that India loses Rs 15 lakh crore worth of diesel every year due to toll booth delays. A staggering figure that highlights the urgency of reform.

"Commercial vehicles are very important for India's economy. However, the new FASTag annual pass has only been announced for private vehicles. This is unfair to commercial vehicles, which also deserve a similar option. For the past four years, we have been requesting the Ministry of Transport to make travel easier for commercial vehicles, but nothing has been done yet," said Sabharwal.

He further added: “Due to delays at toll booths, a huge amount of diesel is wasted, about Rs 15 lakh crore every year.”

Conclusion

While the Rs 3,000 Annual FASTag Pass is undoubtedly a step in the right direction for private vehicle users, it exposes the policy gap when it comes to FASTag for commercial vehicles. For a sector that contributes significantly to both GDP and infrastructure efficiency, the lack of a similar pass is a missed opportunity.

A comprehensive toll pass scheme tailored for private commercial vehicles and large freight carriers could not only boost the transport industry’s productivity but also curb emissions and fuel waste. As India continues its push toward economic growth and smart infrastructure, inclusive toll policies must follow, ensuring that no wheel is left behind on the road to progress.

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