Starting December 26, Indian Railways will implement a slight increase in passenger fares as part of a fare rationalization strategy aimed at addressing rising operational and manpower costs.
Photo : PTI
Train journeys in India are set to become marginally more expensive from December 26, after Indian Railways announced a revised passenger fare structure as part of a fare rationalisation exercise. The move aims to offset rising operational and manpower costs across the national transporter’s expanding network, said a TOI report.
According to Indian Railways, the revised fares are expected to generate around Rs 600 crore in additional revenue during the current financial year.
What’s Changing in Ticket Prices
Indian Railways clarified that fares for short-distance and suburban travel will largely remain untouched, while longer journeys will see small per-kilometre increases.
- Ordinary Class (up to 215 km):
No change. Existing fares will continue.
- Ordinary Class (beyond 215 km):
Fare to rise by 1 paise per kilometre.
- Non-AC Mail and Express trains:
Fare increase of 2 paise per kilometre from December 26.
This means an additional Rs 10 for a 500 km journey.
- AC classes on Mail and Express trains:
Fares will also go up by 2 paise per kilometre.
- Suburban travel and monthly season tickets:
No fare hike announced.
Why Are Rail Fares Being Raised?
Railway officials said the revision comes after a decade of rapid expansion in rail infrastructure, services, and safety systems. With a growing network and increased focus on operational safety, manpower requirements have surged.
Manpower costs alone have climbed to Rs 1.15 lakh crore, while pension expenditure now stands at Rs 60,000 crore. Overall operational expenditure for 2024–25 has reached Rs 2.63 lakh crore.
To manage these financial pressures, Indian Railways is relying on a mix of higher freight loading and limited passenger fare rationalisation rather than steep fare hikes.
Improved Performance, Higher Scale
Officials highlighted that these measures have helped improve operational efficiency and safety outcomes. India has now become the second-largest cargo-carrying railway system in the world, reflecting the scale of freight movement handled by Indian Railways.
The Railways also pointed to the successful operation of over 12,000 additional trains during the recent festive season as evidence of improved planning, capacity, and execution.
