Railways to rationalise passenger fare structure from December 26

22 Dec 2025 13:22:49
Staff Reporter:
 
INDIAN Railways has ratio nalised its passenger fare struc ture with effect from December 26, while ensuring minimal impact on common passengers. The revised structure focuses on balancing rising operational costs with affordability and improved services. As per the new rationalisation there is no increase in fares for suburban services and Monthly Season Tickets (MSTs), no fare hike in Ordinary Class journeys up to 215 km, for Ordinary Class journeys beyond 215 km, the increase will be 1 paisa per kilo metre, mail/Express Non-AC classes will see an increase of 2 paise per kilometre and AC class es will also have a marginal increase of 2 paise per kilometre. Under this rationalisation, Indian Railways is expected to earn approximately Rs 600 crore during the current year.
 
For instance, on a 500 km journey in Non-AC coaches, passengers will have to pay only Rs 10 extra. Over the last decade, Indian Railways has significantly expanded its network and oper ational capacity. To handle higher levels of operations and strengthen safety measures, manpower has been increased. As a result, manpower costs have risen to Rs 1,15,000 crore, while pension expenditure has increased to Rs 60,000 crore. The total operational cost for 2024–25 has reached Rs 2,63,000 crore. To meet these rising costs, Railways is focusing on enhanced freight loading along with a lim ited rationalisation of passenger fares.
 
Owing to continuous investments in safety and oper ational improvements, Indian Railways has recorded signifi cant progress in safety standards and has emerged as the second largest cargo-carrying railway system in the world. The successful operation of over 12,000 special trains during the recent festival season further reflects improved operational efficiency. Indian Railways reaffirmed that it will continue striving for greater efficiency and cost con tainment, while fulfilling its social obligations and ensuring safe, reliable and affordable travel for passengers.
 
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