Executive Summary:
The Ministry of Railways addressed concerns regarding increased railway charges and passenger amenities. Fares were rationalized effective July 1, 2025, after a five-year gap, with minimal increases. The revision aims to balance affordable transportation with improved services and financial sustainability while continuing subsidies for passengers and concessions for specific categories.
Key Points / Main Content:
Fare Revision Details:
* Fares rationalized effective July 1, 2025, after more than 5 years.
* Minimal fare increases range from half paise to two paise per km.
* No increase in general class fares up to 500 km.
* Half paisa increase per km for Sleeper Class Ordinary and FirstClass Ordinary.
* One paisa increase per km for Non-AC Classes in Mail Express.
* Two paise increase per km for reserved AC Classes.
* MST and Suburban travel fares remain unchanged.
* Prior fare revision occurred on January 1, 2020, with increases of 1-4 paise per km based on class.
Financial Implications:
* Indian Railways provides affordable transport with fares among the lowest globally.
* Total subsidy on passenger travel in FY 2023-24 is provisionally estimated at ₹60,466 Crore, equating to a 45% subsidy.
* Fare revision is expected to have an insignificant impact on the total subsidy amount due to low incremental increases.
* Less than half of trips will experience a marginal fare increase.
Passenger Amenities and Services:
* Upgradation of passenger amenities at stations under schemes like Amrit Bharat Station Scheme.
* Introduction of modern trains such as Vande Bharat, Non-AC Amrit Bharat trains and Namo Bharat Rapid Trains etc.
* Enhanced monitoring and feedback mechanisms through Rail Madad.
* Implementation of digital initiatives such as Rail one app and UTS on Mobile App.
Concessions and Subsidies:
* Subsidies continue for all passengers, covering 45% of travel costs.
* Concessions beyond the general subsidy are maintained for Divyangjans, 11 patient categories, and 8 student categories.
Impact Analysis:
Passengers:
Impact: Fare increases primarily affect reserved AC classes and longer distances beyond 500 km for general class. Low-income travelers in General coaches face no fare increase for trips under 500 km. The changes aim to improve service quality without significantly increasing costs for most passengers.
Action Required: Review revised fare structure to understand potential impact on travel costs.
Low-Income Travelers:
Impact: Limited impact as there is no increase in general class fares for distances up to 500 km, and fares for MST and Suburban travel have not been revised.
Action Required: Be aware of continued subsidies and concessions available.
Government of India (Ministry of Railways):
Impact: Aims to balance affordable passenger fares with improved service quality and financial sustainability through minimal fare rationalization.
Action Required: Continue monitoring the impact of fare revisions, focusing on passenger feedback and operational efficiency. Ensure effective utilization of revenue generated to enhance passenger amenities and services.
Key Entities Referenced
Ministry of Railways: The government ministry responsible for the Indian Railways.
Lok Sabha: The lower house of the Parliament of India, where the question was raised.
SHRI ASHWINI VAISHNAW: The Minister of Railways, Information Broadcasting and Electronics Information Technology, who provided the answer to the question.
Indian Railways: The national railway system of India.
Amrit Bharat Station Scheme: A scheme by the Ministry of Railways for the upgradation of passenger amenities at railway stations.
Vande Bharat: A series of semi-high-speed, intercity electric multiple unit trains operated by Indian Railways.
Rail Madad: An enhanced monitoring and feedback mechanism implemented by Indian Railways.
UTS on Mobile App: A digital initiative by Indian Railways for unreserved ticket booking.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
LOK SABHA
UNSTARRED QUESTION NO.1673
TO BE ANSWERED ON 30.07.2025
INCREASE IN RAILWAY FARE AND AMENITIES TO PASSENGERS
1673. SHRI BALASHOWRY VALLABHANENI:
SHRI AZAD KIRTI JHA:
SHRI PUTTA MAHESH KUMAR:
SHRI KALYAN BANERJEE:
SHRI K RADHAKRISHNAN:
SHRI RAJESH VERMA:
SHRI ASADUDDIN OWAISI:
SHRI BENNY BEHANAN:
SHRI NARESH GANPAT MHASKE:
DR. SHRIKANT EKNATH SHINDE:
SMT. SHAMBHAVI:
SHRI RAVINDRA DATTARAM WAIKAR:
Will the Minister of RAILWAYS be pleased to state:
(a) whether the Government has recently increased various
charges including ticket fares, reservation fees, platform tickets,
parcel rates and other service charges, if so, the details of each
type of charge increased along with the date of implementation;
(b) the average amount of increase in passenger ticket fares (for
sleeper, 3AC, 2AC and general class) across different zones;
(c) the reasons for introducing fare hikes after a five year gap and
the factors that were considered in determining the revised fare
slabs particularly for distance between 501 km and 3000 km;
(d) the details of the last fare revision that took place before this;
(e) the estimated additional revenue expected to be generated
annually from this fare hike;
(f) whether the Government has a specific plan for utilizing the
increased revenue, and if so, the details thereof;(g) the manner in which the Government plans to ensure that the
increased revenue directly contributes to easing train travel for
passengers particularly in terms of safety, punctuality, comfort and
availability of services;
(h) the measures being taken to improve passenger services,
operational sustainability and comfort in return to increase fare
costs and the percentage of price hiking will be used for passenger
amenities thereof;
(i) whether the Government has any plan to review or rationalise
the increased charges in light of public feedback or economic
hardship;
(j) whether the fare revision will affect concessional fares, senior
citizen discounts, and free travel categories, if so, the details of any
exemptions retained under the new structure;
(k) whether the Government is aware that the fare hike may
disproportionately affect daily students especially those relying on
sleeper and general class, if so, the details thereof; and
(l) whether the Government considers reinstating concessions for
vulnerable categories like senior citizens and patients particularly in
light of the increased burden form the fare hike, if so, the details
thereof?
ANSWER
MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND
ELECTRONICS & INFORMATION TECHNOLOGY
(SHRI ASHWINI VAISHNAW)
(a) to (l) Indian Railways provides 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
neighbouring countries.
The total amount of subsidy given in FY 2023-24 on passenger travel
is provisionally estimated at ₹60,466 Crore. This amounts to 45%subsidy on the cost of passenger travel. In other words, if the cost
of providing service is ₹100, then the price of ticket is ₹55 only. This
subsidy is continuing for all passengers. Further, concessions
beyond this subsidy amount are continuing for many categories of
persons with disabilities (Divyangjans), 11 categories of patients
and 8 categories of students.
Fares have been rationalized w.e.f. 01 July 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 general class 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 traveller in General
coaches, there is no fare increase for 500 km travel.Prior to this, the fare rationalization in basis fare of rates was done
on 01.01.2020 wherein fare was increased by 1 paisa per kilometer
in case of ordinary (Non-AC) non-suburban; increased by 2 paise per
Kilometer for Non-AC classes of Mail/Express and increased by 4
paise per kilometer for AC classes. There was no increase in
suburban fare and season tickets.
Various initiatives have been undertaken by the Ministry of Railways
in providing safe, comfortable, and quality services to passengers
which includes the following:
• Upgradation of passenger amenities at stations under schemes
like Amrit Bharat Station Scheme.
• Introduction of modern trains such as Vande Bharat, Non-AC
Amrit Bharat trains and Namo Bharat Rapid Trains etc. to
enhance passenger experience, cleanliness, and onboard
services.
• Enhanced monitoring and feedback mechanisms through Rail
Madad.
• Implementation of digital initiatives such as Rail one app, UTS
on Mobile App etc.
The above measures have resulted in increased passenger
satisfaction. With focus on operational efficiency, modernization
and digitization Indian Railways aims to maintain affordable
passenger fares while improving quality of services and ensuring
financial sustainability.
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