Executive Summary:
The Ministry of Railways addresses concerns raised in Lok Sabha Unstarred Question No. 487 regarding passenger fare increases effective July 1, 2025. The response details the rationale behind the fare rationalization, the categories affected, and measures to maintain affordability. It also outlines ongoing efforts to improve suburban rail infrastructure, safety, and frequency.
Key Points / Main Content:
Fare Rationalization:
* Fares rationalized effective July 1, 2025, after a gap of more than 5 years.
* Increase ranges from half paisa per km to two paise per km for premium classes.
Fare Revision Details:
* No increase in Second Class Ordinary up to 500 km.
* Half paisa increase per km in Second Class Ordinary beyond 500km, Sleeper Class Ordinary, and First Class Ordinary.
* One paisa increase per km in Non-AC Classes in Mail Express.
* Two paisa increase per km in reserved AC Classes.
* Fares for MST and Suburban travel remain unchanged.
Subsidy and Affordability:
* Passenger travel subsidized at an estimated Rs. 60,466 Crore in FY 2023-24 (45% subsidy).
* Fare revision expected to have an insignificant impact on the total subsidy amount.
* Marginal fare increase expected for less than half of the trips.
* No fare increase for low-income travelers in general coach for up to 500 km travel.
Infrastructure and Services Improvement:
* Ongoing network expansion and track upgradation to improve suburban infrastructure and safety.
* Increased frequency of train services, including suburban, subject to operational feasibility, traffic justification, and resource availability.
Impact Analysis:
Passengers:
* Impact: Fare increase on specific categories and distances; potential impact on travel costs.
* Action Required: Be aware of revised fare structure.
Low and Middle-Income Families:
* Impact: Minimal impact due to unchanged MST and suburban travel fares, and no increase in Second Class Ordinary up to 500 km.
* Action Required: Be aware of the unchanged fares for MST and suburban travel, and for Second Class Ordinary up to 500 km.
Indian Railways:
* Impact: Potential for increased revenue; continued responsibility for providing affordable transportation services.
* Action Required: Implement fare revisions and continue efforts to improve infrastructure and services.
Key Entities Referenced
Ministry of Railways: The government ministry responsible for railways in India.
Lok Sabha: The lower house of the Parliament of India, where the unstarred question was raised.
SHRI ASHWINI VAISHNAW: The Minister of Railways, Information and Broadcasting, and Electronics Information Technology.
Indian Railways: The state-owned railway company of India responsible for providing rail transport.
Vande Bharat: A type of semi-high-speed train operated by Indian Railways.
FY 202324: The financial year 2023-2024, used in the context of the subsidy provided on passenger travel.
MST: Monthly Season Ticket; the fares for MST travel have not been revised.
EWS: Economically Weaker Sections, for whom the government intends to protect affordability.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
LOK SABHA
UNSTARRED QUESTION NO.487
TO BE ANSWERED ON 23.07.2025
INCREASE IN PASSENGER TRAIN FARES
487. SHRI SUBBARAYAN K:
SHRI C N ANNADURAI:
SMT. RACHNA BANERJEE:
SHRI SELVAM G:
COM. SELVARAJ V:
SHRI PUSHPENDRA SAROJ:
SHRI NAVASKANI K:
SHRI MURASOLI S:
SHRI RAKESH RATHOR:
Will the Minister of RAILWAYS be pleased to state:
(a) whether the Government has increased passenger train fares
from 1 July, 2025, if so, the details thereof and the reasons
therefor, specially for AC coaches;
(b) the details of the categories of trains such as Mail/Express,
Passenger, Superfast, Vande Bharat etc. and classes of
travel- Sleeper, AC, General that will be affected by the
proposed fare hike;
(c) whether the Government has assessed/studied the likely
financial burden on daily commuters lower/middle income
group and economically weaker sections due to the
proposed fare increase, especially on long distance and non-
suburban routes, if so, the details thereof;
(d) whether any measures have been proposed to protect
affordability for low-income passengers, EWS, senior citizens
and essential travel categories, including possible
exemptions or subsidies, if so, the details thereof;
(e) the details of distance fixed for increasing fares and the
expected increase in revenue based on the recent fare hike;
(f) the manner in which it plans to balance affordability with
revenue generation;(g) whether any public consultation or stakeholders feedback
was taken before deciding on fare hikes for different classes,
if so, the details thereof and if not, the reasons therefor; and
(h) whether the Government plans to improve infrastructure,
safety and frequency of suburban rail services and if so, the
details thereof?
ANSWER
MINISTER OF RAILWAYS, INFORMATION AND BROADCASTING AND
ELECTRONICS & INFORMATION TECHNOLOGY
(SHRI ASHWINI VAISHNAW)
(a) to (h): Indian Railways provide affordable transportation
service to more than 720 crore passengers. The fares of Indian
Railways are among the lowest in the world, even when
compared with the neighboring countries.
Subsidy: The total amount of subsidy given in FY 2023-24 on
passenger travel is provisionally estimated at Rs. 60,466 Crore.
This amounts to a 45 % subsidy on the cost of passenger travel.
Fares have been rationalized w.e.f. 01July 2025 after a gap of
more than 5 years. The increase in fares is very low, ranging from
half paise per km to two paise per km for premium classes.
The details of the fare revision are as follows:
i) No increase in Second Class Ordinary up to 500 km and
thereafter Half paisa increase in fare per passenger per
kilometer.
ii) Half paisa increase in fare per passenger per kilometer in
Sleeper Class Ordinary and First-Class Ordinary.
iii) 01 Paisa increase per passenger per kilometer in Non-AC
Classes in Mail Express.iv) 02 paisa increase per passenger per kilometer in reserved AC-
Classes.
To maintain affordability for low and middle income families, the
fares for MST and Suburban travel have not been revised.
Further, the fare revision is likely to have insignificant impact on
the total amount of subsidy because the revision ranges from
half paise to 2 paise only per kilometer of travel.
It is estimated that less than half the trips will have a marginal
increase in fare. For example, for a low –income traveler in
general coach, there is no fare increase for 500 km travel.
To improve the Suburban infrastructure and safety, several
works of Network expansion, Track upgradation etc. have been
taken up. Further, increase in frequency of train services
including suburban train services is an on-going process over
Indian railways subject to operational feasibility, traffic
justification and availability of resources etc.
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