- Why in news
- On 27 October 2026 the Road Transport Ministry announced a Concessional Local Pass for non-commercial vehicle owners living within 20 km of a National Highway fee plaza. It takes effect on 1 November 2026.
- What it is
- The National Highways Fee (Determination of Rates and Collection) Rules set how user fees are fixed and collected on national highways. They are made under the National Highways Act, 1956 and are amended from time to time. The Concessional Local Pass is a new option within these rules for residents living near a fee plaza.
- Eligibility
- Non-commercial vehicle owners with a valid, functional FASTag who live within 20 km of the fee plaza.
- Annual fee
- Rs 1,500 for plazas outside municipal or local town limits and Rs 3,000 for plazas within them.
- Exclusions
- The pass is not available on closed-system highways or expressways, nor where a service road or alternative road exists.
Don’t confuse with Local Pass vs monthly pass: Residents can choose either the existing monthly pass or the new annual concessional Local Pass. The Local Pass is annual and valid for one named plaza only.
Don’t confuse with Open vs closed toll system: The Local Pass is not given on closed fee-collection systems, where fees depend on distance travelled between entry and exit.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Lowers the commuting cost for residents who must cross a toll plaza daily.
- Addresses a long-standing local grievance over tolls near plazas.
Problems
- Revenue loss for concessionaires and the exchequer, plus the need to verify residence.
- Exclusion of areas with an alternative road may leave some nearby residents without relief.
Way forward
- Use FASTag and app-based verification to check residence and limit misuse.
- Review rates annually and assess the effect on revenue and local traffic.
Put in your answer
FASTag scale: Over 13 crore FASTags have been issued across the country.
- 2024Mains GS3 · Q6Electronic toll collection technology: advantages, limitations, proposed changes, and hazards
- 2014Mains GS2 · Q8Whether a Rail Tariff Authority fare regulation benefits consumers, Railways, or private operators
- 2020Mains GS3 · Q11Meaning of investment; factors in designing public-private concession agreements
- 2025Prelims Q89Can states make rules for minor mineral concessions; central notification power for minor minerals
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: New rule with a lasting topic and specific numbers (20 km, Rs 1,500 and Rs 3,000). Tolling is not a frequent UPSC question area.
Worth revising until Prelims 2028: most news questions come within two years of the event.