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Indian Railways Announces Targeted Fare Hike Effective December 26

Officials say the modest hike helps cover sharply higher operating costs.

Overview

  • Fares rise by 2 paise per kilometre for all AC classes and non-AC Mail/Express services, with an extra 1 paisa per kilometre on ordinary class journeys beyond 215 km.
  • Suburban services and ordinary trips up to 215 km see no change, and with an average journey length near 154 km most passengers are unaffected.
  • The move marks the second passenger fare revision of the fiscal year, following an earlier increase in July.
  • Railway data cites 2024–25 costs of about Rs 1.15 lakh crore for manpower, Rs 60,000 crore for pensions, and Rs 2.63 lakh crore for total operations.
  • Revenue effects remain uncertain, with reports ranging from roughly Rs 600 crore by 2026 to projections nearing Rs 3,900 crore annually from both revisions.