Indian Railways Announces Fare Hike Effective December 26

The Indian Railways has announced a fare increase effective December 26, 2023, expected to generate Rs 600 crore by March 2026. Passengers will see a slight rise in ticket prices for journeys over 215 km, while fares for shorter routes and suburban tickets remain unchanged. This adjustment comes as the railways aims to manage rising operational costs and enhance safety measures. The Ministry of Railways also noted significant progress in the high-speed bullet train project in Maharashtra. Read on for more details about the fare structure and operational improvements.

By Narendra Chaudhary Dec 22, 2025, 08:49 IST

Fare Revision Details

New Delhi, Dec 22: The Indian Railways has declared a fare increase that will take effect on December 26, 2023. This adjustment is expected to generate an additional Rs 600 crore for the Railways by March 31, 2026.

According to the new pricing model, passengers will incur an extra charge of 1 paisa per kilometer for journeys exceeding 215 km in Ordinary Class, while Mail and Express services will see an increase of 2 paise per kilometer for both non-AC and AC classes. For instance, a 500 km non-AC trip will cost an additional Rs 10. However, fares for routes shorter than 215 km will remain unchanged.

To maintain affordability for low and middle-income families, there will be no fare hikes for suburban and monthly season tickets.

The Ministry of Railways explained that over the last ten years, the Indian Railways has significantly expanded its network, reaching even the most remote areas. To support this growth and enhance safety, the workforce is being increased, leading to a manpower cost of Rs 1,15,000 crore and a pension cost of Rs 60,000 crore. The total operational cost is projected to reach Rs 2,63,000 crore in 2024-25.

To address the rising manpower expenses, the railways are focusing on boosting cargo loading while implementing a modest adjustment in passenger fares.

Thanks to these safety and operational improvements, the Indian Railways has become the second-largest cargo-carrying railway globally, as stated by the Ministry.

It is noteworthy that freight rates have not been adjusted since 2018, despite rising input costs, with the railways depending on increased cargo movement to enhance revenue.

The recent successful operation of over 12,000 trains during the festival season exemplifies the improved operational efficiency.

Additionally, the Ministry highlighted that construction for the high-speed bullet train project in Maharashtra is progressing well, with land acquisition now fully completed.