Indian Railways revises fare structure from December 26. What changes for passengers
Under the revised structure, there will be no increase in fares for suburban services and Monthly Season Tickets, and no change in Ordinary Class fares for journeys up to 215 km.
- Dec 21, 2025,
- Updated Dec 21, 2025 1:04 PM IST
Indian Railways has revised its passenger fare structure with effect from December 26. It has introduced marginal increases on select long-distance and higher-class travel while keeping suburban, season ticket, and short-distance fares unchanged.
Under the revised structure, there will be no increase in fares for suburban services and Monthly Season Tickets, and no change in Ordinary Class fares for journeys up to 215 km. For Ordinary Class travel beyond 215 km, fares will rise by 1 paise per kilometre, while Mail and Express non-AC coaches and AC classes will see an increase of 2 paise per kilometre.
The impact on passengers would remain limited. For a 500 km journey in non-AC coaches, the additional cost will be Rs 10, according to the new fare calculation. The rationalisation is expected to generate around Rs 600 crore in additional revenue during the current year.
The fare revision comes against the backdrop of a sharp expansion in the Railways' network and operational scale over the past decade. To manage higher traffic volumes and improve safety standards, the Railways has increased its manpower strength, pushing up operating costs.
As a result, manpower expenses have risen to Rs 1.15 lakh crore, while pension liabilities now stand at Rs 60,000 crore. The total cost of operations has increased to Rs 2.63 lakh crore in 2024–25, underscoring the financial pressure on the national transporter.
To offset these rising costs, the Railways is focusing on higher cargo loading alongside limited passenger fare rationalisation, the railway said in a statement. These measures, combined with operational reforms, have helped improve safety outcomes and efficiency across the network.
India has now become the second-largest cargo-carrying railway system in the world, reflecting the scale-up in freight operations. The Railways also cited the successful mobilisation of more than 12,000 trains during the recent festival season as evidence of improved operational efficiency.
Indian Railways has revised its passenger fare structure with effect from December 26. It has introduced marginal increases on select long-distance and higher-class travel while keeping suburban, season ticket, and short-distance fares unchanged.
Under the revised structure, there will be no increase in fares for suburban services and Monthly Season Tickets, and no change in Ordinary Class fares for journeys up to 215 km. For Ordinary Class travel beyond 215 km, fares will rise by 1 paise per kilometre, while Mail and Express non-AC coaches and AC classes will see an increase of 2 paise per kilometre.
The impact on passengers would remain limited. For a 500 km journey in non-AC coaches, the additional cost will be Rs 10, according to the new fare calculation. The rationalisation is expected to generate around Rs 600 crore in additional revenue during the current year.
The fare revision comes against the backdrop of a sharp expansion in the Railways' network and operational scale over the past decade. To manage higher traffic volumes and improve safety standards, the Railways has increased its manpower strength, pushing up operating costs.
As a result, manpower expenses have risen to Rs 1.15 lakh crore, while pension liabilities now stand at Rs 60,000 crore. The total cost of operations has increased to Rs 2.63 lakh crore in 2024–25, underscoring the financial pressure on the national transporter.
To offset these rising costs, the Railways is focusing on higher cargo loading alongside limited passenger fare rationalisation, the railway said in a statement. These measures, combined with operational reforms, have helped improve safety outcomes and efficiency across the network.
India has now become the second-largest cargo-carrying railway system in the world, reflecting the scale-up in freight operations. The Railways also cited the successful mobilisation of more than 12,000 trains during the recent festival season as evidence of improved operational efficiency.