**Executive Summary**
The document is the answer provided by the Minister of Railways to Unstarred Question No. 718, scheduled for 04.02.2026, regarding the revision of passenger fares. It details the two fare rationalizations undertaken in financial year 2025-26 and the reasons behind them. It also outlines measures to mitigate financial burdens on passengers and improve services, highlighting the aim of maintaining affordability and sustainability.
**Key Points / Main Content**
* **Fare Rationalization**
* Indian Railways undertook two passenger fare rationalizations in FY 2025-26 after a 5-year gap.
* The first rationalization was implemented on 01.07.2025, and the second on 26.12.2025.
* **First Fare Rationalization (01.07.2025)**
* No increase in Second Class Ordinary fares up to 500 km. Thereafter, a 0.5 paisa increase per passenger per kilometer.
* 0.5 paisa increase per passenger per kilometer in Sleeper Class Ordinary and First-Class Ordinary.
* 01 paisa increase per passenger per kilometer in Non-AC Classes in Mail Express.
* 02 paisa increase per passenger per kilometer in reserved AC-Classes.
* **Second Fare Rationalization (26.12.2025)**
* No increase in Second Class Ordinary fares up to 215 km. Thereafter, a 01 paisa increase per passenger per kilometer.
* 01 paisa increase per passenger per kilometer in Sleeper Class Ordinary and First-Class Ordinary.
* 02 paisa increase per passenger per kilometer in Non-AC Classes in Mail Express.
* 02 paisa increase per passenger per kilometer in reserved AC-Classes.
* **Other Charges and Services**
* Existing basic fares of major train services (Tejas Rajdhani, Rajdhani, etc.) have been revised according to class-wise fare increases.
* Reservation charges, superfast surcharge, and other ancillary charges were not increased.
* Fares for Suburban services and Season Tickets (including suburban and non-suburban routes) have not been revised.
* **Financials**
* 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 neighboring countries.
* The subsidy for passenger travel in FY 2023-24 is estimated at ₹60,466 Crore, amounting to a 45% subsidy on the cost of passenger travel.
* The fare revision is expected to have insignificant impact on the total subsidy amount.
* **Service Improvement Initiatives**
* Upgradation of passenger amenities at stations.
* Introduction of modern trains (Vande Bharat Sleeper, Amrit Bharat trains, Namo Bharat Rapid trains, etc.).
* Enhanced monitoring and feedback mechanisms through Rail Madad.
* Implementation of digital initiatives (Rail one app, UTS on Mobile App, etc.).
**Impact Analysis**
**Passengers**
* **Impact**
* Marginal increase in fares for most trips, ranging from 0.5 paisa to 2 paisa per kilometer.
* No increase in fares for Second Class Ordinary up to certain distances.
* Continued provision of affordable transportation.
* Improvement in passenger amenities and services.
* **Action Required**
* Be aware of the revised fare structure when planning travel.
**Indian Railways**
* **Impact**
* Additional revenue generation to balance affordability with operational sustainability.
* Maintaining affordable passenger fares.
* Maintaining the subsidy on passenger travel.
* **Action Required**
* Continue initiatives to improve passenger services and modernize the railway system.
**Lower and Middle-Income Commuters**
* **Impact**
* Maintenance of affordability, as reservation charges, superfast surcharge and other ancillary charges were not increased.
* Fares for Suburban services and Season Tickets have not been revised.
* **Action Required**
* N/A
Key Entities Referenced
Indian Railways: Primary entity responsible for passenger transportation and subject of the fare revision policy.
Ministry of Railways: Government body overseeing the operations and policies of Indian Railways.
Passenger Fares: The central subject of the document, specifically regarding the revision and rationalization thereof.
Amrit Bharat station scheme: A scheme to upgrade passenger amenities at railway stations.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
LOK SABHA
UNSTARRED QUESTION NO. 718
TO BE ANSWERED ON 04.02.2026
REVISION OF PASSENGER FARES
718. SHRI KARTI P CHIDAMBARAM:
SHRI TANUJ PUNIA:
KM. SUDHA R:
SHRI V K SREEKANDAN:
SMT. KANIMOZHI KARUNANIDHI:
SHRI K RADHAKRISHNAN:
SHRI BENNY BEHANAN:
SHRI BALWANT BASWANT WANKHADE:
Will the Minister of RAILWAYS be pleased to state:
(a) whether the Government has undertaken two revisions of passenger
fares/superfast charges, reservation charges and other ancillary fees
during the financial year 2025–26 and if so, the dates, categories of
trains and classes of travel to which each revision applied along with
the reasons of such increases;
(b) the State-wise details of stations and services affected by these fare
revisions;
(c) whether the Government assessed the cumulative socio-economic
impact of multiple fare increases on passengers, particularly daily
commuters low and middle-income commuters/long distance travellers,
students and migrant workers/workers, families and senior citizens,
prior to implementing the second revision and if so, the details thereof;
(d) the manner in which the Government plans to revise the system without
hindering service to passengers who cannot afford to pay the twice-
increased amount;
(e) whether such fare hikes have adversely affected passenger traffic and
shifted commuters towards other modes of transport;
(f) the total additional revenue expected to be generated by Railways as a
result of this fare increase;(g) the steps proposed to reduce the financial burden on common
passengers and to ensure that the additional revenue collected leads to
better safety, punctuality and passenger amenties; and
(h) whether it is also true that the railways was forced to increase the train
fare as the condition of the railways has been deteriorating and if so,
the details thereof?
ANSWER
MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND
ELECTRONICS & INFORMATION TECHNOLOGY
(SHRI ASHWINI VAISHNAW)
(a) to (h) 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 neighboring
countries.
The total amount of subsidy given in FY 2023-24 on passenger travel is
provisionally estimated at ₹60,466 Crore. This amounts to a 45% subsidy
on the cost of passenger travel. In other words, if the cost of providing
services 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.
Indian Railways has undertaken two rationalizations of passenger fares
during the financial year 2025–26 after a gap of 5 years. These revisions
have been carried out uniformly and in a calibrated manner across
applicable classes. The first rationalization was implemented with effect
from 01.07.2025, the details of which 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.The second rationalisation was implemented with effect from 26.12.2025,
the details of which are as follows:
i) No increase in Second Class Ordinary up to 215 km and thereafter 01
paisa increase in fare per passenger per kilometer.
ii) 01 paisa increase in fare per passenger per kilometer in Sleeper Class
Ordinary and First-Class Ordinary.
iii) 02 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.
The existing basic fares of major train services, including Tejas Rajdhani,
Rajdhani, Shatabdi, Duronto, Vande Bharat, Humsafar, Amrit Bharat, Tejas,
Mahamana, Gatimaan, Antyodaya, Garib Rath, Jan Shatabdi, Yuva Express,
Namo Bharat Rapid Rail, and Ordinary non-suburban services (excluding AC
MEMU/DEMU, where applicable), have been revised in line with the
approved class-wise basic fare increases.
Reservation charges, superfast surcharge and other ancillary charges were
not increased. In order to maintain affordability for lower and middle
income families, the fares for Suburban services and Season Tickets,
including both suburban and non-suburban routes have not been revised.
The fare revision is likely to have insignificant impact on the total amount
of subsidy because this revision ranges from half paisa to 2 paisa only per
kilometer of travel. It is estimated that less than half the trips will have a
marginal increase in fare. The increase in fares on both the occasions was
very low and have been undertaken to balance passenger affordability
while maintaining operational sustainability.
Further, 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 Sleeper, 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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