Indian Railways likely to hike train fares across classes from July 1

All non-AC coaches on Mail and Express trains are likely to see a hike of 1 paisa per kilometre for passengers

National transporter Indian Railways is likely to raise fares of trains, barring suburban railways, by 2 paise per kilometre for passengers travelling in AC classes along with nominal hikes in other classes, senior government officials aware of the matter said.

 

According to sources, there will be no hike in the fares of trains on the suburban rail network. Moreover, monthly season tickets will continue to cost the same. The fares for passengers on the second class of ordinary (non-Mail or Express) trains will continue to be the same up to 500 km of travel. Beyond this, a hike of half a paisa/km will be applicable.

 

All non-AC coaches on Mail and Express trains are likely to see a hike of 1 paisa/km for passengers.

 

“The last hike in passenger fares was done five years ago. The new rates are likely to be effective from July 1, and there will be no retrospective adjustment for tickets booked before July 1 for journeys after July 1,” said a senior official.

 

The last hike had been done in 2020 – months before the coronavirus pandemic caused a nationwide lockdown. At that time, the Railways — then under Piyush Goyal — had introduced a hike of 1 paisa/km on ordinary second class, 2 paise/km on second class of Mail/Express trains and sleeper berths, and 4 paise/km across all AC classes.

 

Sources said that the hike being deliberated upon is modest compared to that done in 2013, when prices were raised in the range of 6-10 paise/km for AC passengers and around 2 paise/km for sleeper class passengers. 

 

https://ssl.gstatic.com/ui/v1/icons/mail/images/cleardot.gifBack in February, Union Minister of Railways, Electronics and Information Technology, and Information and Broadcasting Ashwini Vaishnaw had brushed aside concerns over a possible fare hike due to higher revenue receipts projected in the Union Budget for 2025-26 (FY26).

 

“There is no fare hike on the cards. The increase in passenger revenue will be driven by growth in passenger volumes on the railways. Passenger numbers have been increasing each year, and this year, total passengers are expected to rise to 7.5 billion. Next year, this number will be around 7.8-7.9 billion. So, revenue growth will purely be on the passenger count,” Vaishnaw had said in a post-Budget press conference.

 

In the February Budget, the likely revenue from passenger segment was kept at ₹92,800 crore, up 13 per cent from ₹82,000 crore in the revised estimates (RE) for FY25. Specifically, the rise expected in AC three-tier class is pegged at ₹37,115 crore in the current financial year (FY26), up 23 per cent from RE of FY25. 

 

The fare hike, according to experts, is nominal. For instance, an AC-class ticket for a journey between Delhi and Mumbai would cost roughly around ₹30 more to the passenger.

 

“Indian Railways has long operated with a significant gap between cost and recovery in passenger services. This revision is a step toward correcting fare distortions and reducing excessive cross-subsidisation from freight earnings. The additional revenue can help Railways modernise services, improve safety, punctuality, and hygiene, and sustain investments in new-age rolling stock and stations,” said Lalit Chandra Trivedi, former general manager of East Central Railway.

 

For the general public, the incremental increase is negligible — for example, just ₹1 more on a 100 km Mail/Express non-AC trip, he added..

 

“In essence, this is a calibrated, pro-poor, and growth-oriented revision — an important move to ensure that Indian Railways remains financially viable while continuing to serve the common citizen,” Trivedi said.   

Proposed fare hike 

AC classes: Fares may be raised by 2 paise per kilometre 

Second class: Half a paisa per kilometre after 500 kilometres 

Non-AC (Mail/Express trains): 1 paisa per kilometre 

No change in suburban rail fares, monthly season tickets