The Centre is considering a toll exemption framework for private vehicles used by about 1.4 million active defence personnel, as officials look for a way to avoid disruption from the expanding barrier-less tolling network on national highways.
Why the issue has surfaced
The concern is linked to the rollout of Multi-Lane Free Flow (MLFF) tolling, which uses automated systems instead of physical toll barriers. Under the new setup, some armed forces personnel using private vehicles have reportedly received e-challans when the system did not recognise their exemption status.
At present, armed forces personnel can claim toll exemption for private vehicles by showing identity cards at toll plazas. That manual process becomes difficult in MLFF, where vehicles pass through at speed and toll deduction is handled digitally.
Talks between MoRTH and Defence
The Ministry of Road Transport and Highways (MoRTH) has begun discussions with the Ministry of Defence on a mechanism that would allow eligible private vehicles to move through toll plazas without payment while keeping traffic flow uninterrupted. One proposal under discussion is to equip such vehicles with FASTags, with the annual pass cost reimbursed by the defence ministry. The report says discussions are still inconclusive on which ministry will bear the expense.
An alternative being examined is a differentiated FASTag that records vehicle movement but does not deduct toll charges. Officials are also looking at ways to identify exempt vehicles digitally so that manual checks can be avoided.
Scale of the MLFF rollout
The move is meant to prevent delays in the larger MLFF expansion. The system is expected to cover around 1,150 toll plazas across the country by the end of FY28. For now, fewer than 10 plazas are operating under MLFF, while bids have been invited for more than 100 additional plazas. The ministry expects another 300–400 plazas to be bid out by the end of the current financial year.
MoRTH had earlier suggested that near-complete coverage could be achieved by the end of this year, but implementation has moved more slowly than originally indicated.
How the automated system works
MLFF removes the need for physical barriers and manual verification. It relies on overhead gantries fitted with automatic number plate recognition (ANPR) cameras and radio-frequency identification (RFID) readers to identify vehicles and process toll charges automatically as vehicles travel on the highway.
According to the report, vehicles that are not digitally marked as exempt can end up receiving e-challans for unpaid tolls. The issue has already appeared on highway stretches where MLFF is in use.
A government official, speaking on condition of anonymity, said authorities are testing the technology and trying to resolve such problems before the system is expanded nationwide. Emails sent to MoRTH and the defence ministry remained unanswered.
Earlier ideas and official vehicles
In May 2026, reports said MoRTH was exploring dedicated FASTags for toll-exempt vehicles, including those used by armed forces personnel, so that movement could be digitally recorded without triggering deductions or penalties. The report also noted that official armed forces vehicles could be identified through special defence number plates, with movement data deleted later for security reasons.
Private vehicles are considered more complicated because their ownership and use are not directly tied to government departments. Former Road Transport and Highways and Defence Secretary Giridhar Aramane said the ministry could either integrate vehicle details into its database or issue special FASTags with unlimited free movement. He also suggested that regular FASTags could be used if toll payments are reimbursed by the respective departments. He added that MoRTH may authorise the Ministry of Defence to issue a certain number of FASTags free of cost for official purposes, as agreed between the two sides.
Possible financial burden
The likely cost could be substantial. India’s armed forces have about 1.4 million active personnel across the Army, Navy, and Air Force, but the exact number of private vehicles that would qualify for exemption is not publicly known.
The report says extending the existing FASTag annual pass, which costs ₹3,075 for 2026-27 and allows up to 200 crossings of national highway and expressway toll plazas in a year, to a large number of vehicles could cost a few hundred crore rupees annually. For example, one million vehicles would cost ₹307.5 crore. The final amount would depend on how many vehicles are made eligible and on the structure of the framework.
Industry view and next steps
Kuljit Singh, Partner and National Infrastructure Leader at EY India, said the arrangement is important for smooth movement, especially in border areas and around major defence office clusters such as the Western Command Headquarters. He added that it would improve the efficiency of the MLFF system by aligning toll infrastructure with defence-related exemptions without affecting barrier-less travel.
The report says accurate identification, periodic validation, protection against cloned or misused FASTags, and real-time database synchronisation will be essential for the system to work reliably. Differentiated FASTag identifiers, or exemption status built into the FASTag or backend account level, could remove the need for manual checks while keeping digital records intact.
The proposed framework is expected to be finalised before the national expansion of MLFF, as the government tries to balance exemption needs for armed forces personnel with the operational integrity of the automated tolling system.
