Indian Railways announces fare hike to be effective from 26th December

Train travel across the country is set to become marginally more expensive as Indian Railways has announced a revision in passenger fares, effective from December 26. The fare hike, aimed at mobilising additional revenue of about ₹600 crore. It will apply selectively to longer-distance journeys and certain travel classes; key commuter segments have been kept out of its ambit.

Under the revised structure, fares in ordinary class will increase by one paisa per kilometre for journeys exceeding 215 kilometres. In the case of Mail and Express trains, passengers travelling in non-air-conditioned classes will see a hike of two paise per kilometre. Air-conditioned classes across all trains will also witness an increase of two paise per kilometre.
>>Passengers who travel for the sleeper or general class and if the kilometer is just up to 215 km, for that case, there is no as such revision in fare.

Indian Railway Fare Changes

The Indian Railway clarified that the hike in fare will not affect monthly season tickets for suburban train services, which is a relief for daily commuters.

“There is no increase in the monthly season tickets of suburban trains and up to 215 km travel in ordinary class of other trains,” a note circulated to reporters stated. Before ticket booking, check the Train Fare Enquiry for an easy journey.

Indian Railway said the journey consists of 500km in a non-AC coach. In that case, passengers will need to pay 10Rs additional when the new fare comes into force. As per the official, this hike is optimised to decrease the burden on travellers with the hike in operational prices.

The Railway Minister said Indian Railways will implement the ticket fare hike after December 26. Passengers who have already booked their tickets will not have to pay any additional amount after this date. After ticket booking, check your PNR status for a hassle-free journey. 

Revision in Fare charges

The fare revision has drawn political criticism. The Congress questioned the timing and the manner of its implementation. Party spokesperson Pawan Khera alleged that instead of announcing the hike through the Union Budget, the government introduced it in an “unauthorised” and “surreptitious” manner. In a social media post, he criticised the move as being implemented just ahead of the annual budget exercise.

After the price hike, the official defends the decision as Indian Railways has raised the expenses of operating over the past dec

ade. This is done to expand its services and network. According to the official figures, the cost increased for manpower to ₹1.15 lakh crore, and also the rise in pension expenditure to ₹60,000 crore.

Overall operational expenditure is estimated at ₹2.63 lakh crore in 2024–25

“To cater to a higher level of operations and to improve safety, Railways has expanded its manpower. Consequently, manpower and pension costs have risen sharply,” the official note said. To manage these higher costs, Railways is focusing on increasing freight loading and undertaking limited passenger fare rationalisation.

The latest hike is the second fare increase this year. Indian Railways raised non-AC fares on Mail and Express trains by one paisa per kilometre and increased AC fares by two paise. The railway implemented this fare revision on January 1, 2020, raising fares for sleeper and second AC classes across categories.

As the fare hike strengthens the Railway Finances by around Rs. 600 crore annually. The government will handle the impact on passengers and make sure it should me modest. Short-distance and suburban travellers are not charged, and they can enjoy the uncharged fares.