NEW DELHI, October 27 (Aalimi Nation) – The Union government has introduced an annual concessional local pass for people who live close to National Highway fee plazas, the Ministry of Road Transport and Highways (MoRTH) said on Tuesday. The pass takes effect on November 1, 2026.

The scheme was notified as the National Highways Fee (Determination of Rates and Collection) (Fifth Amendment) Rules, 2026, under the National Highways Act, 1956. The ministry said that with more than 13 crore FASTags issued across the country, the provision is meant to make local travel cheaper and ease daily commuting for residents near toll plazas.

The pass is open to residents living within 20 km of a fee plaza. The vehicle must be registered for non-commercial use and carry a valid, functional FASTag. Applicants may be asked to show proof of residence, such as an Aadhaar card or another approved document.

The annual charge depends on where the plaza stands. Residents pay Rs 1,500 a year at plazas outside municipal or local town limits, and Rs 3,000 a year at plazas within them. The rates may be revised every year on April 1.

Eligible residents can choose between the new annual local pass and the existing monthly pass, which costs Rs 360. Over 12 months, the monthly pass adds up to Rs 4,320. A resident at a plaza outside town limits would therefore pay Rs 2,820 less a year with the new pass, and one at a plaza within municipal limits would pay Rs 1,320 less, assuming the monthly pass is bought every month.

The new pass is separate from the national FASTag annual pass, priced at Rs 3,075 for 2026-27, which covers many plazas but does not give free passage at every toll plaza on the National Highways.

The local pass is valid only at the specific plaza for which it is issued, and it cannot be transferred to another plaza or another vehicle. It will not be issued for highways or expressways that charge fees under a closed user fee collection system. It will also not be issued where a service road or an alternative road is available for commuters.

The benefit will therefore depend on the layout of each stretch of highway.

Residents in towns and villages beside highways have long raised the cost of crossing a plaza for routine trips such as going to work, school or market. State governments and local groups in several parts of the country have pressed the Centre for relief for such daily commuters, including through lower slabs of fees. The annual pass gives households a fixed yearly cost in place of a monthly purchase.

The rules apply from November 1. The ministry has not yet detailed the application process in its announcement, and residents will need to check the plaza-level arrangements, the documents required and the date from which passes can be issued once the fee-collection agencies publish them.