India

Centre to Explore FASTag‑Based Toll Exemption for Armed Forces Private Cars

By Subhash Narayan

The Ministry of Road Transport and Highways (MoRTH) is discussing with the Defence Ministry a way to exempt the private vehicles of about 1.4 million active defence personnel from tolls on highways that use multi‑lane free‑flow (MLFF) systems. The current MLFF network, which eliminates physical toll booths, issues electronic challans to vehicles that are not recognised as exempt. Armed forces personnel who normally use identity cards to claim toll exemption in the existing system risk receiving e‑challans when driving private cars on MLFF routes.

MoRTH has begun talks to create a mechanism that would allow these vehicles to pass toll points without stopping or paying. One proposal is to equip the vehicles with FASTags, with the annual pass fee reimbursed by the Defence Ministry. A second option under consideration is a special FASTag that records the vehicle’s movement but does not deduct toll charges. The aim is to avoid delays in the nationwide rollout of MLFF, which is expected to cover the country’s roughly 1,150 toll plazas by the end of FY28.

Under the current system, private vehicles of armed forces personnel can claim exemption by showing their identity cards at toll plazas. With MLFF, however, vehicles that are not digitally recognised as exempt may be fined. The issue has already arisen on stretches where MLFF has been introduced.

In May, Mint reported that MoRTH was exploring dedicated FASTags for toll‑exempt vehicles, including those used by armed forces. Official military vehicles could be recognised through special number plates, with movement data deleted for security reasons. Private vehicles used for official purposes present a more complex challenge because ownership is not directly linked to a government department.

Former Road Transport and Highways and Defence Secretary Giridhar Aramane said the ministry could either integrate vehicle details into its database or issue special FASTags with unlimited free movement. An alternative would be to allow regular FASTags, with toll payments reimbursed by the relevant departments. “MoRTH may authorize the ministry of defence to issue a certain number of FASTags as agreed between them. Those shall be free of cost as they will be used for official purposes,” Aramane said.

The financial impact could be significant. The annual FASTag pass costs ₹3,075 for 2026‑27 and permits up to 200 toll crossings per year for eligible non‑commercial vehicles. At that rate, one million vehicles would cost ₹307.5 crore annually. The final expense would depend on the number of eligible vehicles and the terms of the exemption framework.

Kuljit Singh, partner and national infrastructure leader at EY India, said the arrangement would help ensure smooth movement, especially in border areas and around major defence office clusters. “This will also strengthen the overall efficiency of the MLFF system by ensuring better coordination between tolling infrastructure and defence‑related exemptions,” he added.

MLFF uses overhead gantries with automatic number‑plate recognition cameras and RFID readers to identify vehicles and deduct tolls from linked FASTag accounts. Accurate identification, periodic validation, prevention of cloned or misused FASTags, and real‑time database synchronization are critical to maintaining the system’s credibility.

The proposed framework is expected to be finalised before MLFF is expanded nationally, as the government seeks to balance statutory exemptions for armed forces personnel with the integrity of its digital tolling system.