Impact of ₹3,000 FASTag Pass on Toll Operators' Revenue, Reports Crisil, ET Infra
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ETInfra
The Ministry of Road Transport and Highways' recent announcement of a ₹3,000 annual FASTag pass is poised to significantly benefit frequent private commuters, but it introduces a new dynamic for private toll operators , according to a recent report by CRISIL Ratings While the pass promises substantial savings for users, it is expected to impact toll collections, potentially necessitating compensation under existing concession agreements.According to the rating agency, the toll operators may see a revenue hit of 4-8 per cent. Private vehicles form 35-40 per cent of the overall traffic plying on the stretches in our sample. In terms of revenue, the share is lower at 25-30 per cent,' said Anand Kulkarni, Director, Crisil Ratings.He further said, 'Assuming a third of these vehicles purchase the annual pass, revenue of toll operators will be impacted by 4-8 per cent. This may need to be compensated for. Timely finalisation of the compensation mechanism and swift implementation will reinforce the confidence of the private sector which plays a key role in funding the growth of the sector.'The annual FASTag pass , set to be effective from August 15, 2025, will be applicable for private vehicles , including cars, vans, and jeeps, on national highways and national expressways. The pass offers coverage for up to 200 trips or one year from the date of activation, whichever comes first.Currently, a private vehicle typically incurs a toll of ₹70-80 per trip. With the new annual pass, commuters utilising it for 200 trips could realise savings of up to approximately 80 per cent, translating to ₹55-65 per trip.Saina S Kathawala, Associate Director, Crisil Ratings said, 'Credit profiles of our rated toll road projects are expected to withstand potential timing mismatches between implementation of the annual pass and finalisation of the compensation mechanism. If there is a six-month lag in receipt of first compensation and a third of private vehicles opt for the annual pass, the DSCRs4 will have a minimal impact this fiscal year.'
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