Indian Railways To Rationalise Ticket Fares From Dec 26; Rs 600 Crore Revenue Boost Expected

New Delhi: Indian Railways has rationalised its fare structure to balance financial sustainability, effective from December 26, 2025. Passengers travelling on Mail and Express trains will now have to pay slightly more, as the Railway Ministry has introduced a fare hike of 2 paise per kilometre for both AC and non-AC coaches. Following an increase in July, this is the second time fares have been revised in the current financial cycle.

According to the new fare rules, a 500 km trip in a non-AC coach will only cost an extra ₹10. These changes do not include suburban and Monthly Season Tickets (MSTs). Passengers travelling shorter distances, up to 215 km, in ordinary class will not see any increase in their ticket prices. Ticket prices for Express trains have been adjusted upward by 2 paise per kilometre for both non-AC and AC coaches. According to an official statement, this move is expected to bring in approximately ₹600 crore in revenue for the financial year.

Indian Railways train fare increase

Officials stated that over the past few years, the railway network has grown rapidly, extending its reach to the country's remote regions. To manage this expanded operation and continue improving safety standards, the railways are actively increasing their workforce. “Consequently, manpower cost has increased to Rs 1,15,000 crore. Pension cost has increased to Rs 60,000 crore. Total cost of operations has increased to Rs 2,63,000 crore in 2024–25,” they said in a statement.

Indian Railways expenditure

Indian Railways is focusing on higher cargo while making minor increases to passenger fares to cover its increasing labour and pension costs.

“Due to these efforts on safety and improved operations, railways have been able to improve safety substantially. India has become the second-largest cargo-carrying railway. The recent successful mobilisation of more than 12,000 trains during the festival season is also an example of improved operational efficiency,” they added.

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