Railway Ministry is Chances of growing Fare for AC classes, sleeper class and second class in an attempt to promote its revenue from passenger section. However, there will be no increase in suburban fares and monthly season tickets, it is learned.
A railway official told the news agency that according to sources, the new rates would be implemented on July 1, 2025. PTI“The matter is under consideration at a high level and a notification can be issued by the government soon,” a source said The Indian Express,
Here are 5 things that you need to know about the latest train fare hike:
- 01
What has the Railway Ministry announced for its passengers?
According to officials, the Ministry of Railways has been considering increasing the fare of non-AC classes in all AC classes from mail/express trains and from July 1, 2025.
A railway official told news agency PTI, “The current growth will be the lowest growth compared to previous fare amendments in 2020 and 2013.”
- 02
How much will the railway be charged for each of the train compartment/classes?
Indian Railways will increase its fees from the following amount (s) for separate train coaches/classes:
AC Class: Two gram per km
Non-AC Sleeper Class (Mail/Express): A ground per km
Second Class (General Class): Half a ground per km. The increase in fees for this category is valid for passengers traveling more than 500 km.
- 03
Does all remain unchanged?
Keeping in mind the interest of daily travelers, there will be no increase in suburban fares and monthly season tickets.
- 04
Where does Indian Railways generate its revenue?
Indian Railways remains the main means of transport for crores of poor people. Railway passenger is giving heavy subsidy to services.
The passenger section contributes about 30% of the total revenue of the railway. According to the Railways, on the expectation of an increase in passenger number, the total estimated revenue from the passenger segment for FY 26 is Rs 92,800 crore.
According to the railway launch of passenger kilometers (PKM), this possibility starting from July will generate an additional revenue of about Rs 700 crore for the remaining period of the current financial year 2025-26.
- 05
Why is there a sudden fare hike?
In December 2024, the Standing Committee on Railways recommended the Indian Railways to review revenue from AC classes and aligned it with aligning costs to reduce the loss in the overall passenger segment.
According to a report by the Parliamentary Committee, suburban services cost about 30%and non-AC travel 39%, while the AC journey produces a marginal surplus of only 3.5%.
According to the committee, to increase the net revenue of Indian Railways, increasing its earnings from the passenger segment is the major importance. At the same time, the committee felt that the ‘general class’ journey should remain cheaper to the public.
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