In a major relief for commuters and logistics operators, the Government of India has announced a significant reduction in toll charges—by up to 50%—on stretches of National Highways that feature major infrastructure such as bridges, tunnels, flyovers, and elevated corridors.
The Ministry of Road Transport and Highways (MoRTH) issued a notification on July 2, amending the National Highways Fee (Determination of Rates and Collection) Rules, 2008. The revised formula for toll calculation is designed to rationalize user charges on infrastructure-heavy highway sections, which were previously subject to disproportionately high tolls due to elevated construction and maintenance costs.
Under the revised rules, tolls will now be calculated based on the lower of the following two values:
- Ten times the length of the structures (bridges, tunnels, flyovers, etc.)
- Five times the total length of the entire highway section (including both structures and regular road)
For example, if a 40-kilometre highway stretch is entirely composed of structures, the toll will now be calculated on 200 km (5 × 40 km) instead of the earlier 400 km (10 × 40 km), effectively halving the toll burden.
Union Minister Nitin Gadkari also announced a new FASTag-based annual pass for private vehicles, priced at ₹3,000, effective from August 15. The pass will be valid for 200 trips or one year, whichever comes first, and is aimed at making highway travel more affordable for frequent non-commercial users.
Expected Impact:
- Lower travel costs for millions of motorists
- Reduced logistics expenses for commercial transporters
- Greater usage of national highway infrastructure
- Improved fairness in toll collection on structure-dense corridors
Officials from the National Highways Authority of India (NHAI) stated that the reform aligns tolls more closely with actual road usage and infrastructure costs, while still ensuring recovery of public investment.
The move follows sustained feedback from commuters and state governments, and is part of the Centre’s broader effort to make India’s highway network more commuter-friendly and economically viable.
