Railways revise fares from Dec 26, aim to boost revenue by Rs 600 crore

New Delhi, Dec 2025 : Indian Railways on Sunday announced a revision in passenger fares, effective from December 26, as part of a broader effort to increase annual revenue by an estimated Rs 600 crore. The fare adjustment introduces only marginal increases, with the focus on longer-distance travel while keeping short-distance and suburban journeys unchanged to protect affordability.

Under the revised pricing structure, passengers travelling beyond 215 km in Ordinary Class will pay an additional 1 paisa per km, while fares for Mail and Express trains — both non-AC and AC — will increase by 2 paise per km. For example, a non-AC journey spanning 500 km will cost Rs 10 more than before. Importantly, these fare hikes do not apply to routes covering distances shorter than 215 km, offering relief to short-haul commuters. Suburban train fares and monthly season tickets have also been excluded from the revision, ensuring that travel remains accessible for low and middle-income urban households.

In a detailed statement, the Ministry of Railways highlighted the need for the fare revision, pointing to rapid expansion and rising operational demands. “Over the past decade, the Indian Railways has significantly expanded its network and operations, reaching even the remotest corners of the country. To support this higher level of operations and further enhance safety, the railways is increasing its manpower,” the ministry said.

According to the statement, manpower costs have climbed to Rs 1,15,000 crore, while pension expenses have risen to Rs 60,000 crore. The total cost of operations for 2024–25 has reached Rs 2,63,000 crore. To meet these growing financial commitments, the railways is banking on increased cargo loading in addition to modest rationalisation of passenger fares.

The ministry also emphasised the impact of sustained safety efforts and operational improvements. “Due to these efforts on safety and improved operations, railways have been able to improve safety substantially. India has become the second-largest cargo-carrying railway in the world,” it noted.

Freight rates have remained unchanged since 2018 despite rising input costs, with the railways relying on enhanced cargo movement to generate higher revenue. Officials cited the successful mobilisation of more than 12,000 trains during the recent festival season as evidence of better efficiency and planning.

Meanwhile, the ministry reported strong progress on the high-speed bullet train project in Maharashtra, confirming that land acquisition for the project is now complete.

Team Maverick