Indian Railways will roll out a revised passenger fare structure from December 26, bringing a marginal increase in ticket prices for long-distance travel while leaving short-distance commuters unaffected.
Under the new framework, there will be no fare hike for suburban train services or monthly season tickets. Passengers travelling in Ordinary Class for distances up to 215 km will also continue to pay the existing rates.
For journeys beyond 215 km, fares will see a modest uptick. Ordinary Class passengers travelling longer distances will pay an additional 1 paise per kilometre. In Mail and Express trains, Non-AC coach fares will rise by 2 paise per kilometre, with a similar increase applicable to AC classes.
Railway estimates suggest that a 500-km journey in a Non-AC coach will cost about Rs 10 more under the revised rates. The rationalisation is expected to generate nearly Rs 600 crore in additional revenue over the year.
Railway officials said the decision reflects the rapid expansion of the rail network and operations over the past decade, alongside sustained investments in safety and efficiency. Increased scale of operations has led to higher staffing and operational costs.
Manpower expenses have climbed to Rs 1.15 lakh crore, while pension liabilities now stand at around Rs 60,000 crore. Overall operational expenditure has reached Rs 2.63 lakh crore in 2024–25.
To manage these rising costs, Indian Railways is combining higher freight loading with a limited adjustment in passenger fares. Officials also pointed to improvements in efficiency and safety, noting that India is now the world’s second-largest rail freight carrier.
They cited the smooth operation of over 12,000 trains during the recent festive season as evidence of enhanced capacity and said efforts will continue to balance efficiency, cost control, and the Railways’ social commitments.
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