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Starting December 26, passengers traveling on Indian Railways will have to shell out slightly more as the Railway Ministry has announced a fare rationalization. The fares for AC coaches and non-AC Mail/Express classes have been increased by 2 paise per kilometer. For example, a passenger traveling a distance of 500 km in a non-AC sleeper coach will now have to pay an additional ₹10. This marks the second fare revision in the current financial year, following a previous adjustment in July.
The Ministry has taken care to protect short-distance and economically weaker travelers by exempting certain categories from the hike. There will be no increase in fares for suburban services or Monthly Season Tickets (MSTs). Furthermore, ordinary class passengers traveling up to 215 km will see no change in their ticket prices. For distances beyond 215 km in the ordinary class, the fare will increase by a minimal 1 paisa per kilometer.
Officials cited rising operational and manpower costs as the primary reason for this move. The total cost of operations for the 2024–25 financial year has reached ₹2.63 lakh crore, with manpower costs alone at ₹1.15 lakh crore and pension liabilities at ₹60,000 crore. To manage these expenses, the Railways is balancing its strategy between limited passenger fare hikes and focusing on higher cargo loading revenue.
Indian Railways expects to generate an additional ₹600 crore during the current year through this rationalization. The ministry emphasized that the expansion of the network, increased train speeds, and a heightened focus on safety over the last decade have necessitated higher spending. By keeping the hike "modest" and protecting local commuters, the authorities aim to maintain a balance between financial sustainability and public service.