Home India Ministry of Railways Parliament Question: Restructuring of Fare Policy...
Date: 2025-12-10 Category: Not Applicable State: Union Government Country: India

Parliament Question: Restructuring of Fare Policy

Issued by Ministry of Railways · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document answers questions raised in Lok Sabha regarding the restructuring of fare policy, implementation of a United Train Control and Traffic Management System, and a long-term transition roadmap towards a Net-Zero Carbon Framework for Indian Railways. It outlines the government's efforts to balance affordability, commercial viability, and competitiveness in passenger and freight services. The document includes details on fare rationalization effective July 1, 2025, and safety measures implemented to reduce accidents. **Key Points / Main Content** * **Fare Policy Restructuring:** * Indian Railways aims to provide affordable transportation for passengers and goods. * Freight rates have not been revised since 2018. * Passenger fares rationalized w.e.f. July 1, 2025, after a gap of 5 years, with minimal increase. * No fare increase in general class up to 500 km. * Half paisa increase in Sleeper and First Class Ordinary. * One paisa increase in Non-AC Mail Express. * Two paisa increase in reserved AC classes. * MST and Suburban travel fares remain unrevised. * **Safety Measures and Accident Reduction:** * Expenditure on safety-related activities has increased over the years. * Electrical/Electronic Interlocking Systems provided at 6,656 stations by October 31, 2025. * 10,098 Level Crossing Gates interlocked by October 31, 2025. * Track Circuiting completed at 6,661 stations by October 31, 2025. * Kavach (Automatic Train Protection System) implementation is ongoing. * Kavach version 4.0 commissioned on 738 Route km on the Delhi-Mumbai and Delhi-Howrah routes. * Bids invited for equipping 9,069 more locomotives with Kavach. * Kavach implementation taken up on 15,512 RKm on GQ, GD, HDN and identified sections. * **Infrastructure and Network Expansion:** * 431 Railway infrastructure projects sanctioned as of April 1, 2025. * Rigorous monitoring of trains and rolling block systems to improve punctuality. * Data loggers are being used for real-time arrival/departure reporting. * **Net-Zero Carbon Framework:** * Indian Railways aims to become a net-zero emitter. * Electrification of railway tracks is a key focus. * 99.1% of Broad Gauge network electrified. * Commissioned 898 MW of solar and 103 MW of wind power plants by November 2025. * Indian Railways is undertaking a project for hydrogen-powered train. **Impact Analysis** **Stakeholder: Passengers** * **Impact:** Fare restructuring will impact travel costs, especially for premium classes, while aiming to maintain affordability for low-income travelers. Safety enhancements will improve travel safety. * **Action Required:** Be aware of the fare changes effective July 1, 2025. **Stakeholder: Indian Railways** * **Impact:** The restructuring impacts revenue and financial sustainability. Implementing safety measures and network expansion require significant investments and resource allocation. Shift towards a Net-Zero carbon framework. * **Action Required:** Continue implementation of safety measures, network expansion projects, and the Net-Zero Carbon Framework. **Stakeholder: Freight Logistics Companies** * **Impact:** Freight rates remain unchanged since 2018, which impacts competitiveness against road transport. * **Action Required:** Monitor freight rates and transportation costs. **Stakeholder: Railway Employees** * **Impact:** Increased safety and infrastructural measures impact workload and training needs. * **Action Required:** Participate in safety training and adapt to new technologies and infrastructure. **Stakeholder: General Public** * **Impact:** Safer and more reliable train services due to enhanced safety measures. A greener railway network. * **Action Required:** Be aware of increased safety measures and new green initiatives by the railway.

Key Entities Referenced

Indian Railways: The primary entity responsible for railway operations and policy implementation discussed in the document. Kavach: An indigenously developed Automatic Train Protection (ATP) system aimed at improving safety and preventing accidents, which is a key focus of the document. Ministry of Railways: The government body overseeing the policy of fare restructuring and railway development.
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GOVERNMENT OF INDIA MINISTRY OF RAILWAYS LOK SABHA UNSTARRED QUESTION NO. 1741 TO BE ANSWERED ON 10.12.2025 RESTRUCTURING OF FARE POLICY 1741. SHRI SHYAMKUMAR DAULAT BARVE: Will the Minister of RAILWAYS be pleased to state: (a) whether the Government acknowledges that the current operational model of Railways continues to face challenges related to financial sustainability due to the cross-subsidisation of passenger fares through freight revenue, resulting in freight logistics becoming less competitive compared to road transport and if so, the details thereof; (b) whether the Government proposes to restructure the fare through a rationalised tariff policy aimed at balancing affordability, commercial viability and multimodal competitiveness and if so, the details thereof; (c) whether the Government plans to implement a United Train Control and Traffic Management System based on ETCS-Level-2/3, ATO, or satellite-based signalling under Kavach in order to improve network capacity, real-time safety and punctuality and if so, the details thereof; and (d) whether a long-term transition roadmap has been prepared to shift toward a Net-Zero Carbon Framework through expanded electrification, green hydrogen-based propulsion, energy storage systems, renewable grid integration and if so, the details thereof? ANSWER MINSTER OF RAILWAYS, INFORMATION & BROADCASTING AND ELECTRONICS & INFORMATION TECHNOLOGY (SHRI ASHWINI VAISHNAW) (a) & (b):Indian Railways strives to provide affordable transportation services for both passengers and goods. Evaluation of various Page 1 of 12alternatives for rationalization of passenger fare and freight tariff is a continuous and ongoing process. To keep the freight rate competitive, the freight rates have not been revised since 2018 despite increase in input cost over the years. Passenger fares have been rationalized w.e.f. 01stJuly 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 (Monthly Season Ticket) and Suburban travel have not been revised. During FY 2024-25, the earning of Indian Railways was ₹2,65,678 cr and revenue expenditure was ₹2,63,018 cr. Major expenditure is done on Staff cost, Pension, energy consumption etc. (c) Indian Railways have taken several measures during the last eleven years to improve asset reliability, safety and punctuality of trains. As a consequence of various asset reliability and safety measures taken over the years, there has been a steep decline in the number Page 2 of 12of accidents. Consequential Train Accidents have reduced from 135 in 2014-15 to 31 in 2024-25 as shown in the graph below. It may be noted that the Consequential Train Accidents during the period 2004-14 was 1711 (average 171 per annum), which has declined to 31 in 2024-25 and further to 11 in 2025-26 (upto November 2025). Another important index showing improved safety in train operations is Accidents Per Million Train Kilometer (APMTKM) which has reduced from 0.11 in 2014-15 to 0.03 in 2024-25, indicating an improvement of approx. 73% during the said period. The number of consequential train accidents during the last ten years is depicted in the graph below:- 234 165 135 55 48 40 31 35 22 11 The various safety measures taken to enhance safety in train operations are as under:- 1. On Indian Railways, the expenditure on Safety related activities has increased over the years as under:- Page 3 of 12 stnediccA niarT laitneuqesnoC fo .oNExpenditure on Safety related activities (Rs. in Cr.) 2013-14 2022-23 2023-24 2024-25 2025-26 (Act.) (Act.) (Act.) 39,463 87,327 1,01,651 1,14,022 1,16,470 2. Electrical/Electronic Interlocking Systems with centralized operation of points and signals have been provided at 6,656 stations up to 31.10.2025 to reduce accident due to human failure. 3. Interlocking of Level Crossing (LC) Gates has been provided at 10,098 Level Crossing Gates up to 31.10.2025 for enhancing safety at LC Gates. 4. Complete Track Circuiting of stations to enhance safety by verification of track occupancy by electrical means has been provided at 6,661 stations up to 31.10.2025. 5. Kavach is a highly technology intensive system, which requires safety certification of highest order. Kavach was adopted as a National ATP system in July 2020. Kavach is provided progressively in phased manner. Initially, Kavach Version 3.2 was deployed on 1465 RKm of South Central Railway and 80 RKm of North Central Railway. Kavach specification Version 4.0 was approved by RDSO on 16.07.2024. After extensive and elaborate trials, Kavach Version 4.0 has been successfully commissioned on Palwal-Mathura-Kota-Nagda section (633 Rkm) on Delhi-Mumbai route and on Howrah- Bardhaman section (105 RKm) on Delhi-Howrah route. Kavach implementation has been taken up in balance sections of Delhi- Mumbai and Delhi-Howrah route. Page 4 of 12Further, Kavach implementation has been taken up on 15,512 RKm covering all GQ, GD, HDN and identified sections of Indian Railways. 6. Detailed instructions on issues related with safety of Signalling, e.g. mandatory correspondence check, alteration work protocol, preparation of completion drawing, etc. have been issued. 7. System of disconnection and reconnection for S&T equipment as per protocol has been re-emphasized. 8. All locomotives are equipped with Vigilance Control Devices (VCD) to improve alertness of Loco Pilots. 9. Retro-reflective sigma boards are provided on the mast which is located two OHE masts prior to the signals in electrified territories to alert the crew about the signal ahead when visibility is low due to foggy weather. 10. A GPS based Fog Safety Device (FSD) is provided to loco pilots in fog affected areas which enables loco pilots to know the distance of the approaching landmarks like signals, level crossing gates, etc. 11. Modern track structure consisting of 60kg, 90 Ultimate Tensile Strength (UTS) rails, Prestressed Concrete Sleeper (PSC) Normal/Wide base sleepers with elastic fastening, fan shaped layout turnout on PSC sleepers, Steel Channel/H-beam Sleepers on girder bridges is used while carrying out primary track renewals. 12. Mechanisation of track laying activity through use of track machines like PQRS, TRT, T-28 etc. to reduce human errors. 13. Maximizing supply of 130m/260m long rail panels for increasing progress of rail renewal and avoiding welding of joints, thereby improving safety. Page 5 of 1214. Ultrasonic Flaw Detection (USFD) testing of rails to detect flaws and timely removal of defective rails. 15. Laying of longer rails, minimizing the use of Alumino Thermic Welding and adoption of better welding technology for rails i.e., Flash Butt Welding. 16. Monitoring of track geometry by OMS (Oscillation Monitoring System) and TRC (Track Recording Cars). 17. Patrolling of railway tracks to look out for weld/rail fractures. 18. The use of Thick Web Switches and Weldable CMS Crossing in turnout renewal works. 19. Inspections at regular intervals are carried out to monitor and educate staff for observance of safe practices. 20. Web based online monitoring system of track assets viz. Track database and decision support system has been adopted to decide rationalized maintenance requirement and optimize inputs. 21. Detailed instructions on issues related with safety of Track, e.g. integrated block, corridor block, worksite safety, monsoon precautions, etc. have been issued. 22. Preventive maintenance of railway assets (Coaches & Wagons) is undertaken to ensure safe train operations. 23. Replacement of conventional ICF design coaches with LHB design coaches is being done. 24. All unmanned level crossings (UMLCs) on Broad Gauge (BG) route have been eliminated by January 2019. 25. Safety of Railway Bridges is ensured through regular inspection of Bridges. The requirement of repair/rehabilitation of Bridges is taken up based upon the conditions assessed during these inspections. Page 6 of 1226. Indian Railways has displayed Statutory “Fire Notices” for widespread passenger information in all coaches. Fire posters are provided in every coach so as to educate and alert passengers regarding various Do’s and Don’ts to prevent fire. These include messages regarding not carrying any inflammable material, explosives, prohibition of smoking inside the coaches, penalties etc. 27. Production Units are providing Fire detection and suppression system in newly manufactured Power Cars and Pantry Cars, Fire and Smoke detection system in newly manufactured coaches. Progressive fitment of the same in existing coaches is also underway by Zonal Railways in a phased manner. 28. Regular counselling and training of staff is undertaken. 29. Concept of Rolling Block introduced in Indian Railways (Open Lines) General Rules vide Gazette notification dated 30.11.2023, wherein work of integrated maintenance/repair/replacement of assets is planned up to 52 weeks in advance on rolling basis and executed as per plan. Further, Automatic Block Signalling (ABS) that enhances line capacity within existing track infrastructure has been provided at 6341 Route km upto 31.10.2025. Implementation of Kavach 1. Kavach is an indigenously developed Automatic Train Protection (ATP) system. Kavach is a highly technology intensive system, which requires safety certification of highest order (SIL-4). 2. Kavach aids the Loco Pilot in running of trains within specified speed limits by automatic application of brakes in case Loco Pilot fails to do so and also helps the trains to run safely during inclement weather. Page 7 of 123. The first field trials on the passenger trains were started in February 2016. Based on the experience gained and Independent Safety Assessment of the system by Independent Safety Assessor (ISA), three firms were approved in 2018-19, for supply of Kavach Version 3.2. 4. Kavach was adopted as National ATP system in July 2020. 5. Implementation of Kavach System involves following Key Activities: a. Installation of Station Kavach at each and every station, block section. b. Installation of RFID Tags throughout the track length. c. Installation of telecom Towers throughout the section. d. Laying of Optical Fibre Cable along the track. e. Provision of Loco Kavach on each and every Locomotive running on Indian Railways. 6. Based on deployment of Kavach version 3.2 on 1465 RKm on South Central Railway and experience gained, further improvements were made. Finally, Kavach specification version 4.0 was approved by RDSO on 16.07.2024. 7. Kavach version 4.0 covers all the major features required for the diverse railway network. This is a significant milestone in safety for Indian Railways. Within a short period, IR has developed, tested and started deploying Automatic Train Protection System. 8. Major improvement in Version 4.0 includes increased Location Accuracy, Improved Information of Signal Aspects in bigger yards, Station to Station Kavach interface on OFC and Direct Interface to existing Electronic Interlocking System. With these Page 8 of 12improvements, Kavach Version 4.0. is planned for large scale deployment over Indian Railways. 9. After extensive and elaborate trials, Kavach Version 4.0 has been successfully commissioned on 738 Route km on Palwal- Mathura-Nagda section (633 Rkm) on Delhi-Mumbai route and Howrah-Bardhaman section (105 Rkm) Delhi- Howrah route. Kavach implementation has been taken up in balance sections of Delhi-Mumbai & Delhi-Howrah corridors. 10. Progress of key items of Kavach on High density routes including Delhi-Mumbai & Delhi-Howrah corridors are as under: SN Item Progress i Laying of Optical Fibre Cable 7,129 Km ii Installation of Telecom Towers 860 nos iii Provision of Kavach at Stations 549 nos iv Installation of Track side equipment 2,674 RKm v Provision of Kavach on Locos 4,154 11. Further, track side Kavach implementation work has been taken up on 15,512 RKm covering all GQ, GD, HDN and identified sections of Indian Railways. 12. Bids have been invited for equipping another 9,069 locomotives with Kavach version 4.0. Kavach is being provided progressively in a phased manner in locomotives. 13. Specialized training programmes on Kavach are being conducted at centralized training institutes of Indian Railways to impart training to all concerned officials. By now more than 40,000 technicians, operators and engineers have been trained on Kavach technology. This includes 30,000 Loco Pilots & Assistant Page 9 of 12Loco Pilots. Courses have been designed in collaboration with IRISET. Network expansion To increase the capacity, network expansion works such as doubling/multitracking of existing lines, Gauge conversion etc. have been taken up in a big way. The details of commissioning/laying of new track across Indian Railways is given below: - New track Average commissioning of new tracks Period Commissioned 4.2 Km/day 2009-14 7,599 Km 8.57 Km/day (more than 2 times) 2014-25 34,428 Km Further, as on 01.04.2025, on Indian Railways, 431 Railway infrastructure projects (154 New Line, 33 Gauge Conversion and 244 Doubling) of total length 35,966 Km, costing approx. ₹ 6.75 lakh crore are sanctioned. The summary is as under: - Total Length Total Exp. No of Length Commissioned Category upto Mar'25 Projects NL/GC/DL till Mar'25 (₹ in Cr) (km) (km) 154 16,142 3,036 1,45,318 New Lines Gauge 33 4,180 2,997 22,753 Conversion Doubling / 244 15,644 6,736 1,22,858 Multitracking 431 35,966 12,769 2,90,929 Total To improve the punctuality of trains, several steps have been taken by Indian Railways. These include rigorous monitoring of running Page 10 of 12passenger carrying trains at divisional, zonal and Railway Board levels, introduction of rolling block system for maintenance of assets to increase their reliability, removal of infrastructure bottlenecks in a planned manner and rationalization of Time Table in a scientific manner. Further, to ensure real time and realistic reporting of arrival/departure of passenger trains, data loggers are being used. The sustained focus on improvement has helped in achieving punctuality about 80% during current year. (d) Indian Railways has envisioned to become net zero emitter through offsetting carbon emissions with the usage of power through non-fossil sources, saving in diesel consumption by electrification of railway tracks, consistent efforts directed towards modal shifting of cargo and passenger from road to rail, etc. As of November 2025, about 898 Mega Watt (MW) of solar plants (both on rooftops and on land) and about 103 MW of wind power plants have been commissioned. Further, 100 MW of renewable power under Round the Clock (RTC) mode tied up from Solar Energy Corporation of India (SECI) has also started flowing. In addition to this, 1500 MW renewable capacity under RTC mode has been tied up. This is hybrid solution consisting of solar, wind and storage component. Further, electrification of Railway network on Indian Railways has been taken up in mission mode. So far, about 99.1% of Broad Gauge (BG) network has been electrified. The electrification in remaining network has been taken up. Electrification carried out during 2014- 25 and before 2014 is as under: Page 11 of 12Period Route Kilometer Before 2014 (about 60 years) 21,801 2014-25 46,900 Indian Railways has taken up a state-of-the-art project for running of its first hydrogen train, on pilot basis, as per specifications framed by the Research Designs & Standards Organization (RDSO) to demonstrate the use of hydrogen powered train technology in Railways. The project established the commitment of Indian Railways towards advancements in alternative energy-powered train travel thereby ensuring a cleaner and greener future for the country’s transportation sector. ****** Page 12 of 12

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