According to the revised structure, there will be no increase in fares for suburban services and monthly season tickets (MSTs). Similarly, passengers travelling up to 215 km in ordinary class will not face any fare hike
AC class fares will rise by 2 paise per kilometre, the Railways said. Representational pic
The Indian Railways has rationalised its passenger fare structure with effect from December 26, stating that the move involves only a marginal increase in select categories while protecting suburban commuters and short-distance travellers.
According to the revised structure, there will be no increase in fares for suburban services and monthly season tickets (MSTs). Similarly, passengers travelling up to 215 km in ordinary class will not face any fare hike.
For longer journeys, the Railways has introduced a modest increase. Ordinary class passengers travelling beyond 215 km will pay an additional 1 paise per kilometre, while mail and express trains in non-AC categories will see an increase of 2 paise per kilometre. AC class fares will also rise by 2 paise per kilometre, the Railways said.
It further emphasised that the impact on passengers would be minimal. For instance, on a 500 km journey in non-AC coaches, passengers will have to pay only Rs 10 more under the revised fare structure.
The Railways is expected to earn approximately Rs 600 crore during the current year as a result of this fare rationalisation.
Explaining the rationale behind the move, the Railways said it has significantly expanded its network and operations over the past decade, leading to higher operational requirements. To manage increased train operations and improve safety standards, the Railways has expanded its workforce.
Rising manpower costs drive fare rationalisation
As a result, manpower costs have risen to Rs 1.15 lakh crore, while pension expenditure has increased to Rs 60,000 crore. The total operational cost for 2024–25 has gone up to Rs 2.63 lakh crore, the Railways said.
To meet these rising expenses, the Railways is focusing on higher cargo loading along with limited passenger fare rationalisation, while continuing to pursue its broader social obligations.
The Railways, in a press release, also highlighted improvements in safety and operational efficiency. India has emerged as the second-largest cargo-carrying railway system in the world, aided by enhanced infrastructure and better operations. The successful mobilisation of more than 12,000 trains during the recent festive season was cited as an example of improved efficiency.
The Railways said it would continue efforts to enhance efficiency and contain costs, while ensuring affordable travel for the public and meeting its social objectives.
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