There has always been a debate about toll tax in India. Road and Transport Minister Nitin Gadkari has recently announced that a new toll policy will be implemented from 1 April 2025. The purpose of this new policy is to balance toll charges and provide relief to the people. This policy will be convenient not only for consumers, but will also ensure the funding required for road construction and maintenance.
Many changes are expected under this new policy, such as the toll fee exemption, annual and lifetime pass facility, and technical improvements such as GNSS based tolling systems. Let us understand in detail in this article what this new toll policy is and what will be the effect on the general public.
Overview of toll tax policy (English)
| Feature | Details |
| Implementation date | April 1, 2025 |
| Objective | Relief to commuters and better funding |
| Annual pass fee | ₹ 3,000 |
| Lifetime pass fee | ₹ 30,000 (Valid for 15 years) |
| Technology used | GNSS-Based Tolling System |
| Current Toll Income | ₹ 64,809.86 Crore (2023-24) |
| Expected future income | ₹ 1.40 Lakh Crore (Next 2 years) |
What is a new toll policy?
Nitin Gadkari has announced that the government is bringing a toll policy that will provide relief to consumers. Many important aspects have been included under this:
- Annual and lifetime pass: Now vehicle owners will not need to stay at the toll plaza every time. An annual pass will be available for ₹ 3,000 while the lifetime pass will be available for ₹ 30,000, which will be valid for 15 years.
- GNSS -based tolling system: Under this new system the requirement of traditional toll plaza will be eliminated. Vehicle owners will pay toll only according to the traveled distance.
- Toll fee discount: Consumers will be provided facility to pay toll fee at reasonable rates.
The main objective of the new policy
- Road Construction and Maintenance: Money received from toll charges will be used for road construction and maintenance.
- Consumer Facility: Facilities like annual and lifetime pass will help save time and money for consumers.
- Technical Reforms: The GNSS based system will eliminate the problem of traditional toll plaza.
How will the new system work?
GNSS based tolling
Vehicles will be tracked using GNSS (Global Navigation Satellite System) technology. Vehicle owners will pay only according to the distance traveled. This will get rid of long queues on traditional toll plazas.
Annual and lifetime pass
Annual and lifetime passes will be released through Fastag. Currently the monthly pass cost is around ₹ 340 per month, which is ₹ 4,080 annually. Consumers will get financial benefits from the new system.
Current toll collection data
Currently the toll collection in India is growing rapidly.
- 2023-24: ₹ 64,809.86 crore (35% increase)
- 2019-20: ₹ 27,503 crore
The government aims to increase this income to ₹ 1.40 lakh crore in the next two years.
What benefit will people get?
People can get the following benefits from the new toll policy:
- Time Saving: Fastag and GNSS technology get rid of long queues.
- Saving money: Annual and lifetime pass available at cheaper rates.
- Transparency: Payment according to the distance traveled.
Other reforms
Green Express Highway
The government is constructing 36 Green Express highways, which will reduce logistics costs.
Biofuel production
There is also a plan to make bio-CNG and bio-bitten from agricultural waste.
Electric vehicle strategy
The manufacture of electric vehicles and recycling infrastructure is being promoted.
Disclaimer:
This article provides information based on new toll policy. However, the government has not yet shared all the details. The scheme is real and will be implemented from 1 April 2025. If there is any amendment or change, the government will announce it.
