The New Indian Express News

Railways rationalises passenger fares from December 26; non-AC travel to cost Rs 10 more for 500 km

Indian Railways (IR) has rationalised its fare structure with effect from December 26, 2025. Under the revised system, passengers travelling up to 500 km in non-AC coaches will pay an additional Rs 10. The fare revision, however, will not apply to suburban (local) train services or Monthly Season Tickets (MSTs). Journeys of up to 215 km in the ordinary class will also remain unaffected. As part of the rationalisation, fares for Mail and Express trains in non-AC classes have been increased by 2 paise per kilometre.AC class fares have also been raised by 2 paise per kilometre. According to the Railways, the revised fare structure is expected to generate approximately Rs600 crore in additional revenue during the current year. In a statement, the Indian Railways said that over the past decade it has significantly expanded its network and operations, reaching remote regions of the country. This expansion, along with a renewed focus on safety, has required an increase in manpower. Manpower costs have risen to Rs 1.15 lakh crore, while pension expenditure has increased to Rs 60,000 crore. The total cost of operations has reached Rs 2.63 lakh crore in 202425, the Railways said in a statement. To manage these rising expenses, the national transporter is focusing on boosting freight loading, supplemented by a limited rationalisation of passenger fares. The Railways noted that these measures have contributed to improved safety and operational efficiency. India has emerged as the second-largest cargo-carrying railway in the world. The successful operation of more than 12,000 special trains during the recent festival season is a clear example of enhanced operational capability, the statement added.