The Centre is considering extending toll exemptions to eligible private vehicles of approximately 1.4 million active defence personnel as India moves towards barrier-less highway toll collection. The Ministry of Road Transport and Highways (MoRTH) has initiated discussions with the Ministry of Defence to develop a system that allows these vehicles to pass through toll points without deductions or penalties.
The proposal aims to address problems arising from the rollout of the Multi-Lane Free Flow (MLFF) tolling system. Under this technology, vehicles are identified through cameras and electronic readers without stopping at physical toll booths. However, private vehicles used by defence personnel can receive e-challans when the system fails to digitally recognise their exemption status.
FASTag-Based Exemption Under Consideration
One proposal involves providing eligible private vehicles with FASTags, with the annual pass cost reimbursed by the Defence Ministry. However, discussions are still ongoing over which ministry would bear the expense.
Another option is a special FASTag that records vehicle movements without deducting toll charges. Authorities are also examining ways to integrate eligible vehicle details into a central database to ensure automatic recognition.
At present, serving armed forces personnel can claim toll exemption for private vehicles when they are used for official purposes, subject to prescribed conditions. The existing arrangement involves displaying the required identity card or pass at toll plazas. The MLFF system removes this manual verification process, creating the need for a digital alternative.
MLFF Expansion Across India
The government plans to expand MLFF technology across approximately 1,150 national highway toll plazas by the end of FY28. Fewer than 10 toll plazas currently operate under the system, while bids have been invited for more than 100 additional locations. Another 300–400 toll plazas are expected to be put up for bidding by the end of the current financial year.
The new tolling technology uses overhead gantries equipped with automatic number plate recognition cameras and radio-frequency identification readers. It identifies vehicles and processes toll payments while they travel at highway speeds.
Potential Cost of the Exemption
The financial impact will depend on the number of vehicles eventually found eligible. The FASTag annual pass costs ₹3,075 for FY2026-27 and allows up to 200 crossings at national highway and expressway toll plazas.
For illustration, extending the annual pass to one million vehicles would cost approximately ₹307.5 crore a year. The actual expenditure could vary depending on the eligibility criteria and the final mechanism adopted.
The government is expected to finalise the framework before the wider expansion of MLFF. The proposed arrangement seeks to preserve the toll exemptions available to eligible defence personnel while ensuring smooth and uninterrupted operation of automated highway tolling.
