Finance Ministry Considers Toll Exemption For Narrow Highways, Annual Pass For Car Owners On Transport Ministry’s Proposal

The Road Transport Ministry has forwarded two major toll relief proposals to the Finance Ministry for consideration.

These include an exemption from tolls on narrower two-and-a-half-lane national highways and an option for private car owners to purchase an annual toll pass costing around Rs 3,000 for unlimited travel, TOI reported.

TOI sources confirmed that while these proposals have received the Road Transport Ministry's nod, they are currently under review by the Department of Expenditure in the Finance Ministry due to the potential for revenue loss.

While annual passes would cause some loss to toll revenue, stopping user fee collection on narrower highways won’t have any impact, an official stated.

The idea of exempting user fees on two-lane highways with paved shoulders, which typically have narrower stretches, was personally pushed by Transport Minister Nitin Gadkari during a review meeting. These roads currently attract 64 per cent less toll than four-lane or wider highways.

"In most cases, the toll generated is less than the expenses incurred. So, it isn’t a bad proposition to do away with tolling on these stretches," a source was quoted as saying. Fewer than 50 toll plazas fall under this category, most of which are government-funded.

While Gadkari had earlier floated the idea of both annual and lifetime passes, the ministry eventually prioritised a monthly pass model for practical implementation, aiming for maximum uptake.

Data from 2024-25 reveals that private vehicles contributed 20-21 per cent of the total Rs 61,000 crore toll revenue, with commercial and heavy vehicles making up the remaining 79-80 per cent.

The proposal, if approved, could significantly ease financial strain on individual motorists without heavily impacting overall revenue.

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