Indian Railways Fare Revision: What Changed, What Didn't

Indian Railways is implementing a "rationalised" fare structure, marking the second such adjustment in the current financial year. The Ministry of Railways has made these changes to ensure that the impact on common citizens remains minimal while addressing the costs of the network.

What Has Changed?

Fares for all Air-Conditioned classes and non-AC Mail/Express trains have increased by 2 paise per kilometre. For journeys exceeding 215 km, the fare has increased by 1 paisa per kilometre. For a typical 500-km journey in a non-AC coach, the additional cost is a modest ₹10. For premium intercity routes like Delhi–Mumbai, the increase averages around ₹30–₹45, depending on the class. 

The changes are expected to generate approximately Rs 600 crore in additional revenue by 2026.

What Has Not Changed?

Fares for local "suburban" trains remain completely unchanged. No hike has been applied to MSTs, the millions of daily wage earners and office-goers who rely on them. Ordinary class journeys up to 215 km see no price increase. Given that the average passenger journey length in India is roughly 154 km, the majority of travellers will not pay a single rupee extra. Reservation fees and GST remain at current levels.

The decision is driven by a massive spike in operational expenditures, which is estimated at ₹2.63 lakh crore for 2024–25. With manpower costs at ₹1.15 lakh crore and pension liabilities at ₹60,000 crore, the Railways currently spends roughly ₹181 for every ₹100 it earns from passengers.

Indian Railways train fare increase

Officials stated that over the past few years, the railway network has grown rapidly, extending its reach to the country's remote regions. To manage this expanded operation and continue improving safety standards, the railways are actively increasing their workforce. “Consequently, manpower cost has increased to Rs 1,15,000 crore. Pension cost has increased to Rs 60,000 crore. Total cost of operations has increased to Rs 2,63,000 crore in 2024–25,” they said in a statement.

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