Home India Ministry of Railways Parliament Question: Increase in Railway Fare and Amenities ...
Date: 2025-07-30 Category: Not Applicable State: Union Government Country: India

Parliament Question: Increase in Railway Fare and Amenities to passengers

Issued by Ministry of Railways · Not Applicable

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Executive Summary & Key Takeaways

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.
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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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