Government Introduces Concessional Local Pass for Residents Near National Highway Toll Plazas

In a move aimed at improving Ease of Living and reducing commuting costs for local residents, the Government of India has introduced a Concessional Local Pass for eligible non-commercial vehicle owners residing within 20 km of a National Highway fee plaza. The new provision will come into effect from 1 November 2026.

Annual Pass Charges
Eligible vehicle owners can avail an annual local pass at:
- ₹1,500 per year for fee plazas located outside municipal or local town limits
- ₹3,000 per year for fee plazas located within municipal or local town limits

Eligibility Conditions
To avail the concessional pass, a commuter must:
- Own a non-commercial vehicle
- Reside within 20 km of the specific fee plaza
- Have a valid and active FASTag

Eligible users can choose either:
- The existing monthly pass, or
- The new concessional annual local pass
- The pass will be valid only for the designated fee plaza and cannot be transferred for use at other toll plazas.

Exclusions
The concessional local pass will not be available:
- On National Highways and Expressways operating under a closed toll collection system
- At locations where commuters already have access to a service road or alternative road

Availability
- Available at eligible toll plazas from 1 November 2026
- Available through the Rajmargyatra App from 1 December 2026

Legal Framework
- The scheme has been notified through the National Highways Fee (Determination of Rates and Collection) (Fifth Amendment) Rules, 2026, issued under the provisions of the National Highways Act, 1956.
- The Central Government may revise the pass rates annually, with any revisions taking effect from 1 April each year.

Expected Impact
With more than 13 crore FASTags already issued nationwide, the new annual local pass is intended to:
- Reduce travel costs for residents living near toll plazas
- Simplify daily commuting
- Provide greater flexibility through an annual pass option
- Improve convenience for frequent local highway users

From 1 November 2026, residents living within 20 km of eligible National Highway toll plazas can opt for a discounted annual pass costing ₹1,500 or ₹3,000, depending on the plaza's location, making regular local travel significantly more affordable.