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What is the story about?
Indian Railways has announced a rationalisation of passenger fares with effect from Friday, December 26, 2025. The move brings small changes in select categories while keeping fares unchanged for suburban travel and short-distance journeys.
No Fare Hike for Suburban and Short-Distance Travel
Railway authorities have clarified that there will be no fare increase for suburban trains and Monthly Season Tickets (MSTs). Passengers travelling in ordinary class for distances up to 215 km will also not see any fare hike.
Small Increase for Longer Journeys
For passengers travelling beyond 215 km in ordinary class, fares will increase by 1 paise per kilometre.
In Mail and Express non-AC trains, the hike is 2 paise per kilometre, while AC class passengers will also pay 2 paise more per kilometre.
To put this in perspective, a passenger travelling 500 km in a non-AC coach will pay only ₹10 extra, making the impact minimal for most travellers.
Also Read: Indian Railways to add 650 holiday train services to tackle festive rush
Railways to Earn ₹600 Crore From Rationalisation
According to officials, this fare rationalisation is expected to help Indian Railways earn around ₹600 crore during the current year. The additional revenue will support rising operational and manpower costs.
Rising Costs Behind the Decision
Over the past decade, Indian Railways has expanded its network and services significantly. To manage higher train operations and improve safety, manpower has been increased.
As a result, the manpower cost has risen to ₹1.15 lakh crore, pension expenses have reached ₹60,000 crore, and total operational cost stands at ₹2.63 lakh crore in 2024-25.
Railways stated that the modest fare increase, along with a focus on higher cargo loading, will help manage these growing expenses.
Also Read: Indian Railways to bring flavours of India onboard Vande Bharat trains with regional dishes
Focus on Safety and Efficiency
Officials said the additional funds will support continued improvements in safety and operational efficiency. India has now become the second-largest cargo-carrying railway system in the world.
The successful operation of over 12,000 trains during the recent festive season was highlighted as proof of improved efficiency and planning.
Passenger Impact Remains Limited
Indian Railways emphasised that the rationalisation has been designed to keep passenger burden low, especially for daily commuters and short-distance travellers, while ensuring the system remains financially sustainable.
Railways will continue efforts to control costs, improve services, and meet its social responsibilities without placing a heavy burden on passengers, officials said.
No Fare Hike for Suburban and Short-Distance Travel
Railway authorities have clarified that there will be no fare increase for suburban trains and Monthly Season Tickets (MSTs). Passengers travelling in ordinary class for distances up to 215 km will also not see any fare hike.
Small Increase for Longer Journeys
For passengers travelling beyond 215 km in ordinary class, fares will increase by 1 paise per kilometre.
In Mail and Express non-AC trains, the hike is 2 paise per kilometre, while AC class passengers will also pay 2 paise more per kilometre.
To put this in perspective, a passenger travelling 500 km in a non-AC coach will pay only ₹10 extra, making the impact minimal for most travellers.
Also Read: Indian Railways to add 650 holiday train services to tackle festive rush
Railways to Earn ₹600 Crore From Rationalisation
According to officials, this fare rationalisation is expected to help Indian Railways earn around ₹600 crore during the current year. The additional revenue will support rising operational and manpower costs.
Rising Costs Behind the Decision
Over the past decade, Indian Railways has expanded its network and services significantly. To manage higher train operations and improve safety, manpower has been increased.
As a result, the manpower cost has risen to ₹1.15 lakh crore, pension expenses have reached ₹60,000 crore, and total operational cost stands at ₹2.63 lakh crore in 2024-25.
Railways stated that the modest fare increase, along with a focus on higher cargo loading, will help manage these growing expenses.
Also Read: Indian Railways to bring flavours of India onboard Vande Bharat trains with regional dishes
Focus on Safety and Efficiency
Officials said the additional funds will support continued improvements in safety and operational efficiency. India has now become the second-largest cargo-carrying railway system in the world.
The successful operation of over 12,000 trains during the recent festive season was highlighted as proof of improved efficiency and planning.
Passenger Impact Remains Limited
Indian Railways emphasised that the rationalisation has been designed to keep passenger burden low, especially for daily commuters and short-distance travellers, while ensuring the system remains financially sustainable.
Railways will continue efforts to control costs, improve services, and meet its social responsibilities without placing a heavy burden on passengers, officials said.
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