Indian Railways has announced a revised passenger fare structure that will come into force from December 26, 2025, keeping short-distance and suburban commuters out of the fare hike while slightly raising charges for long-distance travel. The move is expected to bring in around ₹600 crore in additional revenue during the current financial year.
As per the new structure, there will be no change in fares for Ordinary Class journeys up to 215 km. However, passengers travelling beyond this distance in Ordinary Class will have to pay an additional 1 paise per kilometre. For Mail and Express trains, fares across both Non-AC and AC categories will increase by 2 paise per kilometre. Suburban train services and Monthly Season Tickets (MSTs) have been left untouched, officials said, to protect daily commuters and lower-income groups.
Railway officials maintained that the hike would have only a marginal impact on passengers. They pointed out that a Non-AC passenger travelling 500 km would pay just ₹10 more under the revised fare system.
The Railways said the decision was taken in view of rising operational costs over the years. Manpower expenses have gone up to nearly ₹1.15 lakh crore, while pension payments stand at about ₹60,000 crore. Overall operational expenditure for 2024–25 has climbed to around ₹2.63 lakh crore. To manage this, the Railways is pushing for higher freight loading while keeping passenger fare revisions limited.
The ministry also flagged major infrastructure progress in recent years. In a statement issued on December 20, it said work on the bullet train project in Maharashtra has gained pace, with land acquisition now fully completed. Between 2014 and 2025, nearly two lakh wagons have been added and over 10,000 locomotives inducted to strengthen freight operations.
Under the Gati Shakti Multi-Modal Cargo Terminal policy, 118 terminals with a combined handling capacity of 192 million tonnes per annum have already been commissioned, Railway Minister Ashwini Vaishnaw told the Lok Sabha. The Railways has also electrified about 99.1 per cent of its broad-gauge network.
Officials said the calibrated fare revision, along with efficiency and safety improvements, is aimed at helping the Railways balance its social responsibilities with growing operational demands.