Government Introduces Concessional Local Pass for National Highway Toll Plazas

A Concessional Local Pass has been issued by the Government of India for the eligible non-commercial vehicle owners who are living within 20 km of a National Highway fee plaza. The Ministry of Road Transport and Highways on 27th October 2026 announced that the above provision shall be effective from 1 November 2026. In terms of cost, the Concessional Local Pass would cost ₹1,500 for fee plazas not within the municipal or local town limits and ₹3,000 for fee plazas within such municipal or local town limits.

Features of the Concessional Local Pass Scheme

As per the above scheme, eligible individuals can opt either for the existing monthly pass or the annual Concessional Local Pass to avail passage through a particular fee plaza. Based on the location of the fee plaza, the annual cost is different.

Eligible vehicles: Non-commercial vehicles

• Residential Eligibility: Within 20 km of the fee plaza
• Annual cost outside municipal/local town limits: ₹1,500
• Annual cost within municipal/local town limits: ₹3,000
• Effective date: 1 November 2026
• Requirement of FASTag: Valid and functional FASTag
• Validity: Applicable for one particular fee plaza
• Transfareable: Not Transferable to Anyone

Eligibility Criteria and Exceptions

There are certain criteria that must be met and exceptions to the use of the Concessional Local Pass Facility.

• Proximity to home: The person owning the vehicle should live within 20 km of the fee plaza concerned.
• Type of vehicle: This facility shall be meant for eligible non-commercial vehicles.
• FASTag: The vehicle should have a valid FASTag installed in it.
• Validity to a particular plaza: The Concessional Local Pass shall only be valid to the fee plaza it was issued for.
• Toll collection system: This facility shall not be applicable on National Highways and Expressways where toll collection is through a closed user fee collection system.
• Alternative routes: The Concessional Local Pass shall not be provided where there is a service road or alternative route for commuters.

Fee for Annual Pass and Availability

The government has laid down two annual fee slabs depending upon whether the fee plaza is located within or outside the municipal/local town limits.

• Outside the municipal/local town limits: ₹1,500 per year
• Within the municipal/local town limits: ₹3,000 per year

The government has made available the facility through the following two stages,

• From 1 November 2026: The annual Local Pass would be available from all eligible toll plazas.
• From 1 December 2026: The pass would also be made available through the Rajmargyatra mobile application.

The Central Government may make annual amendments in the prescribed rates, with the amendment becoming effective from 1 April.

Legislative Framework: National Highways Act, 1956

The new provision has been notified through the National Highways Fee (Determination of Rates and Collection) (Fifth Amendment) Rules, 2026.

The amendment has been made using the powers vested in the government through the National Highways Act, 1956. The Act serves as the legal basis for all matters relating to national highways. The fee rules pertain to the determination and collection of user fees in respect of designated portions of National Highways and associated facilities.

Reasons for Government to Have Introduced the Local Pass

People residing in the vicinity of the National Highway toll plazas will have to use them often because of their work, study, medical trips and other reasons. The repeated payment of the toll will add up to the cost of their travels.

The concessional pass will help ease their financial load with one annual charge of non-commercial vehicles. It will give a chance to get a pass that suits the traveler better instead of using the already available monthly pass.

The exceptions of the closed system and the places with service or alternative roads indicate the areas where the facility can be used.