New FASTag Rs 3,000 Annual Pass May Trim Toll Operators’ Revenues by 4–8%, Says CRISIL
CRISIL warns that the upcoming FASTag annual pass, set for August 2025, could reduce toll operators’ revenues by 4–8% if widely adopted. Learn how compensation mechanisms, traffic share, and credit profiles are impacted
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A recent rating assessment by CRISIL suggests that the National Highway Authority of India’s new Rs 3,000 FASTag annual pass, launching on 15 August 2025, may reduce toll revenues for private road operators by 4–8%.
The study evaluated 40 toll road projects, projecting the pass will cover private vehicles—cars, vans, and jeeps—across up to 200 trips or one year.
Currently, these vehicles pay ₹70–80 per trip. By fully utilising the pass, users could save up to 80%, i.e., Rs 55–65 per trip.
Private vehicles constitute roughly 35–40% of traffic, but only 25–30% of toll revenue. If about a third opt-in, operators’ earnings could drop by 4–8%.
CRISIL emphasized that implementing an effective compensation framework under concession agreements will be crucial to mitigate revenue shortfalls.
Operators will need to claim refunds from NHAI instead of direct toll collection, introducing administrative delays.
Despite possible time lags up to six months, CRISIL expects the credit profiles and DSCRs of rated projects to remain stable, backed by sufficient liquidity coverage.
What It Means for Stakeholders
Frequent commuters stand to benefit from significant toll savings, fostering widespread appeal.
Toll operators must flexibly manage cash flow and expenses until compensation arrives.
NHAI, with a strong track record of payments for annuity projects, remains a reliable counterparty.
The FASTag annual pass offers clear cost benefits for drivers but presents a moderate revenue challenge for toll operators. A well-structured compensation system and prudent financial buffers will be key to ensuring sector stability during the transition.
