Railway Fares to Increase from December 26, Expected to Generate Rs 600 Crore in Additional Revenue

New Delhi- Indian Railways on Sunday announced a marginal revision in passenger fares, effective December 26, with the move expected to generate an additional Rs 600 crore in revenue.

As per the revised fare structure, passengers travelling beyond 215 km in Ordinary Class will pay an additional 1 paisa per kilometre, while those travelling in Mail and Express trains—both non-AC and AC categories—will pay an extra 2 paise per kilometre. For instance, a passenger undertaking a 500 km non-AC journey will incur an additional cost of Rs 10. No fare increase will apply to journeys shorter than 215 km.

The Railways clarified that fares for suburban services and monthly season tickets will remain unchanged to ensure affordability for low- and middle-income commuters.

In a statement, the Ministry of Railways said that over the past decade, Indian Railways has significantly expanded its network and operational reach, connecting even the most remote parts of the country. To support this expansion and enhance safety standards, the Railways has increased manpower, leading to a rise in operational costs.

“Manpower expenditure has increased to Rs 1.15 lakh crore, while pension costs have gone up to Rs 60,000 crore. The total cost of operations has reached Rs 2.63 lakh crore in 2024–25,” the ministry said.

To manage these rising costs, the Railways is focusing on boosting freight loading along with a limited rationalisation of passenger fares. The ministry noted that sustained efforts in improving safety and operational efficiency have delivered results, with Indian Railways now emerging as the world’s second-largest cargo-carrying railway network.

The statement also highlighted that freight rates have not been revised since 2018, despite rising input costs, with revenue growth instead driven by higher cargo movement. The successful operation of over 12,000 additional trains during the recent festive season was cited as an example of improved operational efficiency.

Separately, the ministry said that work on the flagship high-speed bullet train project has gained momentum in Maharashtra, with land acquisition now completed in full.

With inputs from IANS