Railways hikes fares for long journeys from December 26, expects Rs 600 crore revenue gain

The Indian Railways has announced a rationalised passenger fare structure that will come into effect from December 26, 2025, with an emphasis on protecting short-distance and suburban commuters while modestly increasing fares for longer journeys. The new structure is expected to generate an additional revenue of about Rs 600 crore during the current financial year.

Under the revised fare system, there will be no increase in ticket prices for Ordinary Class journeys up to 215 km. For passengers travelling beyond 215 km in Ordinary Class, fares will rise by 1 paise per kilometre. In the case of Mail and Express trains, both Non-AC and AC classes will see an increase of 2 paise per kilometre. Suburban services and Monthly Season Tickets (MSTs) have been kept completely untouched to ensure affordability for daily commuters and low- and middle-income families.

According to railway officials, the impact on passengers will be minimal. For instance, a passenger travelling 500 km in a Non-AC coach will have to pay only Rs 10 extra under the new fare structure.

Explaining the rationale behind the decision, the Railways said its operational scale has expanded significantly over the past decade, leading to a sharp rise in expenditure. Manpower costs have increased to around Rs 1.15 lakh crore, while pension liabilities stand at about Rs 60,000 crore. The total operational cost for 2024–25 has risen to nearly Rs 2.63 lakh crore. To meet these costs, the Railways is focusing on boosting freight loading while making a limited and calibrated adjustment in passenger fares.

The ministry also highlighted major infrastructure and operational developments. In a statement dated December 20, it said construction of the flagship bullet train project has gathered momentum in Maharashtra, with 100% land acquisition completed. Between 2014 and 2025, the Railways has procured nearly two lakh wagons and added over 10,000 locomotives to enhance freight capacity.

Under the Gati Shakti Multi-Modal Cargo Terminal policy, 118 terminals with a combined capacity of 192 million tonnes per annum have been commissioned, Ashwini Vaishnaw informed the Lok Sabha. The Railways has also electrified about 99.1% of its broad-gauge network.

Officials said the fare rationalisation, combined with improved efficiency and safety measures, will help the Railways continue meeting its social and operational goals.