Indian Railways will implement a new fare structure from December 26, 2025, introducing a nominal increase for longer journeys. The Ministry of Railways on Sunday announced a rationalisation of passenger fares, with a revised fare structure aimed at balancing rising operational costs while minimising the impact on passengers.
Passengers will pay an extra 1 paisa per km for Ordinary Class and 2 paise per km for Mail/Express classes on trips exceeding 215 km. This adjustment is projected to generate an additional Rs 600 crore. According to the Railways, there will be no increase in fares for suburban services and Monthly Season Ticket (MST) holders, providing relief to daily commuters. Similarly, ordinary-class passengers travelling up to 215 kilometres will not see any fare increase.
For journeys beyond 215 kilometres in ordinary class, fares will increase by one paise per kilometre. In the Mail and Express non-AC categories, the fare hike has been fixed at 2 paise per kilometre, while AC classes will also see a uniform increase of 2 paise per kilometre.The Ministry clarified that the increase would have a limited financial impact on passengers. For instance, a 500-kilometre non-AC journey will cost only ₹10 extra under the revised structure. The rationalisation is expected to generate an additional ₹600 crore in revenue, according to the release.
Emphasis is being laid on strengthening safety through enhanced manpower deployment, with manpower-related expenditure rising to nearly ₹1,15,000 crore.The pension bill has also witnessed a sharp increase, touching ₹60,000 crore, while the total operating cost of the Railways for 2024-25 is estimated at ₹2,63,000 crore, as per the release.
The Ministry noted that these measures have already contributed to substantial safety and efficiency improvements, with Indian Railways now emerging as the world's second-largest cargo railway system. During the recent festival season, the Railways successfully operated over 12,000 special trains to manage passenger demand.
Looking ahead, the Ministry said Indian Railways will continue its focus on efficiency, cost containment, and operational reforms to achieve the social objective of affordable, accessible transport for the public.Earlier, the Railways hiked fares in July. The fare in non-air-conditioned class in Mail and Express trains was hiked by 1 paise per km and travel in air-conditioned classes became dearer by 2 paise per km.Before that, train fare was hiked on January 1, 2020. In 2020, second-class fare for ordinary and mail/express trains increased by 1 paisa/km and 2 paise/km, respectively. Fares in sleeper classes and all AC classes went up by 2 paise/km and 4 paise/km, respectively.
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