Railways has decided to increase the fare for AC classes, sleeper class and general class after Christmas. It will increase train ticket fare by one paisa per km for journeys in ordinary class beyond 215 km, and two paise per km for non air-conditioned classes of mail or express trains and AC classes of all trains with effect from December 26. There will be no increase in the prices in suburban and monthly season tickets, the Railway minister said. The railways will earn about 600 crore from this rate rationalisation for the remaining months of this financial year 2025-26. Passengers will have to pay only ₹10 extra for a 500-km journey in non-AC coaches and those who have already booked tickets for journeys after December 2026, they will not have to pay any extra amount. Railways has expanded its network and operations significantly over the last decade. To cater to a higher level of operations and to improve safety, it is increasing its manpower.
In July this year, the prices were revised when the fares for AC classes, non- AC class and general class were increased. Railway earns nearly 65% of their revenue from freight. The passenger segment contributes for around 30% of its revenue. In the passenger section, AC classes contribute nearly 54% of total passenger revenues. However the share of AC passengers is only 4.8% of overall passengers.
Indian Railways is one of the largest railway networks in the world. The fare hike, though modest, highlights Indian Railways’ broader effort to reconcile social obligations with financial sustainability in an expanding and modernising network.
