The introduction of the annual toll pass will enhance convenience for travelers by streamlining passage through toll plazas,” says Jagannarayan Padmanabhan, Senior Director & Global Head, Consulting, Crisil Market Intelligence & Analytics, welcoming the government’s new FASTag-based annual pass initiative.

Padmanabhan added that while the average private vehicle travels about 10,000 km annually, much of it occurs outside national highways, so the direct financial impact on toll operators is likely to be minimal. However, the benefits for travelers and overall road efficiency are substantial. “For frequent travelers who use toll roads for more than 2,500 to 3,000 km annually, the pass offers significant cost savings and added convenience, making long-distance travel more seamless,” he said.

The government’s new FASTag annual pass—officially announced this week—is designed to allow unlimited travel on selected national highways for a fixed annual fee, easing the payment process for high-usage private vehicle owners. The move is part of a broader push to decongest toll plazas, improve operational efficiency, and incentivize digital tolling via FASTag.

Experts believe the pass could lead to smoother traffic patterns and reduced wait times at toll booths, especially during peak travel seasons and holiday weekends.