Railway Fare Hike: How a 1-2 Paisa Increase Will Generate Rs 600 Crore

Under the new ticket pricing structure, passengers will pay an extra 1 paisa per km on journeys beyond 215 km in Ordinary Class, and 2 paise per km for Mail and Express non-AC and AC classes. Passengers on a 500 km non-AC journey will pay an additional Rs 10 for their journey. There is no increase in ticket prices for passengers travelling on routes shorter than 215 km.

Fares have also not been raised for suburban and monthly season tickets to ensure travel remains affordable for low and middle-income families.

"Over the past decade, the Indian Railways has significantly expanded its network and operations, reaching even the remotest corners of the country. To support this higher level of operations and further enhance safety, the railways its increasing its manpower. Consequently, manpower cost has increased to Rs 1,15,000 crore. Pension cost has increased to Rs 60,000 crore. Total cost of operations has increased to Rs 2,63,000 crore in 2024–25," the Ministry of Railways said in a statement.

To meet the higher manpower costs, the railways said it is focusing on increasing cargo loading, along with a small amount of rationalisation of passenger fares.

"Due to these efforts on safety and improved operations, railways have been able to improve safety substantially. India has become the second-largest cargo-carrying railway in the world," the statement added.

The freight rates have not been revised since 2018 despite an increase in input costs over the years, with the railways relying on an increase in cargo movement to raise earnings.

The recent successful mobilisation of more than 12,000 trains during the festival season is also an example of improved operational efficiency, the statement added.

Meanwhile, the ministry also noted that construction works on the flagship high-speed bullet train project have gathered momentum in Maharashtra, with 100 per cent land acquisition already completed.

- IANS