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Railways Goes In For Fare Revision To Meet Additional Costs; Second Hike In The Year

by OB Bureau
December 21, 2025
in India, Top Headlines
Reading Time: 1 min read
Railways Goes In For Fare Revision To Meet Additional Costs; Second Hike In The Year

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New Delhi: Indian Railways has announced a revision in fares. While suburban commuters will not be affected, those travelling in AC coaches and non-AC passengers on Mail and Express trains will have to pay slightly more from December 26.

Fares have been increased by 2 paise per kilometre for these categories. A passenger travelling 500 km in a non-AC coach will have to pay Rs 10 extra, as reported by The Times of India.

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This is the second fare revision by Indian Railways during the current financial year. The previous fare revision was implemented in July.

Under the current fare rationalisation, there will be no increase in fares for suburban services and Monthly Season Tickets (MSTs), which account for the largest share of railway passengers. In addition, ordinary class passengers travelling up to 215 km will not face any fare hike, a move aimed at protecting short-distance and economically weaker travellers, railway ministry sources said.

For journeys beyond 215 km in ordinary class, fares will increase by 1 paise per kilometre. In Mail and Express non-AC classes, the fare hike is 2 paise per kilometre, while AC classes will also see a modest increase of 2 paise per kilometre.

Indian Railways expects to earn approximately Rs 600 crore during the current year as a result of this fare rationalisation.

Over the last decade, Indian Railways has significantly expanded its network and operations, officials have said. With more train services, higher speeds, and a strong focus on safety, manpower requirements have increased substantially.

As a result, manpower costs have risen to Rs 1.15 lakh crore, while pension liabilities have increased to Rs 60,000 crore. For the 2024–25 financial year, the total cost of operations has reached Rs 2.63 lakh crore, it has been reported.

To manage these rising costs, officials said Railways is focusing on higher cargo loading along with limited passenger fare rationalisation.

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