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No fare increase for suburban and short distance travel
Railway officials have clarified that there will be no fare increase for suburban trains and monthly season tickets (MST). There will be no increase in fare for passengers traveling in ordinary class for distances up to 215 km.
short hikes for long trips
There will be an increase of 1 paise per kilometer for passengers traveling more than 215 kilometers in ordinary class.
There has been an increase of 2 paise per kilometer in mail and express non-AC trains, while AC class passengers will also have to pay 2 paise more per kilometre.
To put this in perspective, a passenger traveling 500 km in a non-AC coach will have to pay only ₹10 extra, making the impact minimal for most passengers.
Also read: Indian Railways to add 650 holiday train services to deal with festive rush
Railways earns ₹600 crore from rationalization
According to officials, this fare rationalization is expected to help Indian Railways earn around ₹600 crore during the current year. The additional revenue will support rising operational and manpower costs.
Rising costs behind the decision
Over the past decade, Indian Railways has significantly expanded its network and services. Manpower has been increased to improve the management and safety of elevated rail operations.
As a result, manpower costs have increased to ₹1.15 lakh crore in 2024-25, pension expenses have reached ₹60,000 crore, and total operating costs are ₹2.63 lakh crore.
Railways said a modest fare increase as well as a focus on higher freight loading will help manage these rising expenses.
Also read: Indian Railways to bring taste of India with regional cuisine in Vande Bharat trains
Focus on safety and efficiency
Officials said the additional funding will support continued improvements in safety and operational efficiency. India now has the second largest freight railway system in the world.
The successful operation of over 12,000 trains during the recent festive season was highlighted as evidence of improved efficiency and planning.
TRAVELER IMPACT REMAINS LTD
Indian Railways emphasized that the rationalization has been designed to keep the passenger burden low, especially for daily commuters and short distance commuters, while ensuring that the system remains financially sustainable.
Officials said the railways will continue efforts to control costs, improve services and fulfill its social responsibilities without placing a heavy burden on passengers.