New Delhi: Indian Railways has announced a revision in passenger fares that will come into effect from December 26. The decision is aimed at generating around Rs 600 crore in additional revenue while keeping
the impact on common passengers minimal.
The fare hike is small and applies only to passengers travelling longer distances. There will be no increase in ticket prices for short journeys, ensuring affordable travel for daily commuters and lower-income groups.
What Will Change for Passengers
Under the new pricing structure, passengers travelling in Ordinary Class will pay an extra 1 paisa per kilometre for journeys longer than 215 km. For Mail and Express trains, both non-AC and AC passengers will pay an additional 2 paise per kilometre beyond this distance.
For example, a passenger travelling 500 km in a non-AC coach will pay about Rs 10 more. There will be no fare increase for routes shorter than 215 km.
No Hike for Suburban and Season Tickets
To protect the interests of low and middle-income families, the Railways has not increased fares for suburban trains and monthly season tickets. These services are mainly used by daily commuters, and the government wants to keep them affordable.
Why Railways Are Increasing Fares
The Ministry of Railways said that railway operations have expanded greatly over the past decade, reaching even the most remote areas. To support this growth and improve safety, manpower has been increased.
As a result, manpower costs have risen to Rs 1.15 lakh crore, while pension expenses now stand at Rs 60,000 crore. The total cost of operations for 2024–25 has gone up to Rs 2.63 lakh crore.
Focus on Safety and Efficiency
The Railways said the fare hike, along with higher cargo loading, will help manage rising costs. Freight rates have not been increased since 2018, despite higher input costs, and the Railways has relied on higher cargo movement to boost earnings.
Thanks to improved operations, India has become the second-largest cargo-carrying railway in the world. The successful operation of over 12,000 special trains during the festival season shows better efficiency.
Bullet Train Project Gains Speed
The ministry also shared that work on the high-speed bullet train project in Maharashtra has picked up pace, with 100 per cent land acquisition completed, marking a major milestone in India’s rail infrastructure journey.
