Govt Considers Toll Waiver on Narrow National Highways, Proposes ₹3,000 Annual Pass for Private Cars

In a move aimed at making highway travel more economical for the general public, the Ministry of Road Transport and Highways has approved a proposal to waive toll charges on National Highways (NHs) that are narrower than four lanes. The ministry has also proposed an annual toll pass for private car owners, priced at around ₹3,000. Both proposals have been forwarded to the Finance Ministry’s expenditure department for evaluation due to potential implications on toll revenue.

According to a senior official, while the annual toll pass could cause a marginal decline in revenue, removing tolls from two-lane and two-and-a-half-lane highways is unlikely to have a major financial impact. “Most of these roads don’t generate enough toll income to cover their maintenance costs,” the official noted.

Currently, toll rates on narrower highways are roughly 60% lower than those on wider, four-lane or expressway routes. Estimates suggest that approximately 200 toll plazas operate on such narrow roads, and nearly all are publicly funded and operated by government agencies rather than private firms.

Transport Minister Nitin Gadkari had earlier proposed options for both annual and lifetime toll passes for private vehicles. However, the ministry has decided to move forward with the annual option, considering it more feasible and likely to attract greater public support.

Gadkari has frequently emphasized the need for “significant benefits” for highway users and has stated that such steps will address long-standing commuter complaints. The proposal to eliminate tolls on narrower highways reportedly originated from a recent performance review meeting, where the minister directed officials to assess its viability.

Sources point out that the government will face a more complex challenge when dealing with four-lane highways and expressways, many of which are managed by private operators. Introducing an annual pass system on these stretches could require compensation to concessionaires for potential losses.

According to government data, private vehicles account for only 20–21% of the projected ₹61,000 crore toll revenue for 2024–25. The majority—around 79–80%—is contributed by freight and commercial vehicles.

The final decision now rests with the Finance Ministry, which will weigh the proposals’ financial impact before implementation.