Indian Railways Unveils Fare Hike to Boost Revenue by ₹600 Crore

The Indian Railways is set to implement a fare increase starting December 26, aiming to raise ₹600 crore in revenue. Passengers traveling over 215 kilometers will see a slight increase in ticket prices, while fares for shorter journeys and season tickets remain unchanged. This adjustment comes as the railways strive to manage rising operational costs and enhance safety measures. The ministry also noted significant progress in the high-speed bullet train project in Maharashtra. Read on to learn more about how these changes will affect travelers.

By Narendra Chaudhary Dec 21, 2025, 13:56 IST

Fare Changes Set to Take Effect

New Delhi: The Indian Railways has announced a fare increase that will take effect on December 26, with the goal of generating an additional ₹600 crore in revenue.

According to the revised fare structure, passengers traveling over 215 kilometers in Ordinary Class will incur an extra charge of 1 paisa per kilometer, while those in Mail and Express non-AC and AC classes will see an increase of 2 paise per kilometer. For instance, a 500 km journey in non-AC class will cost passengers an additional ₹10. However, fares for trips shorter than 215 km will remain unchanged.

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

The Ministry of Railways stated, "In the last ten years, Indian Railways has significantly expanded its network, reaching even the most remote areas of the country. To support this expansion and enhance safety, we are increasing our workforce, which has led to a rise in manpower costs to ₹1,15,000 crore and pension costs to ₹60,000 crore. The total operational costs are projected to reach ₹2,63,000 crore by 2024-25."

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

The statement further emphasized that due to these safety and operational improvements, India has become the second-largest cargo-carrying railway globally.

Despite rising input costs, freight rates have not been adjusted since 2018, 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 efficiency of operations.

Additionally, the ministry highlighted that construction on the high-speed bullet train project in Maharashtra is progressing well, with complete land acquisition already achieved.