Railways gave 45% subsidy on passenger travel in FY24, says govt

The Indian Railways provisionally spent ₹60,466 crore in subsidy, 45 per cent of the cost of passenger travel, in the financial year 2023-24, the Centre informed the Lok Sabha on Wednesday.

Railway Minister Ashwini Vaishnaw gave the information in response to the questions raised by several MPs on the recent rail fare hike.

Vaishnaw said the Indian Railways provides affordable transportation service to more than 720 crore passengers and its fares are among the lowest in the world, even when compared with neighbouring countries.

"The total amount of subsidy given in FY 2023-24 on passenger travel is provisionally estimated at ₹60,466 Crore. This amounts to a 45 per cent subsidy on the cost of passenger travel," Vaishnaw informed the lower house in a written reply.

 

He said the rail fares were "rationalized" with effect from July 1 this year after a gap of more than five years.

"The increase in fares is very low, ranging from half paise per km to two paise per km for premium classes," he added.

The minister said no fare has been increased in the second class ordinary up to 500 km, beyond that, the hike is just half paisa per passenger per kilometre.

A half paisa increase has been effected in fare per passenger per kilometre in sleeper class, ordinary and first-class ordinary, 1 paisa increase per passenger per kilometre in non-AC classes in Mail Express, and 2 paisa increase per passenger per kilometre in reserved AC classes, he said.

"To maintain affordability for low and middle income families, the fares for MST (Monthly Season Ticket) and Suburban travel have not been revised," Vaishnaw informed the House, saying the hike was insignificant.

"It is estimated that less than half the trips will have a marginal increase in fare. For example, for a low-income traveller in general coach, there is no fare increase for 500 km travel," he said.

Vaishnaw said the Railways has, to improve the suburban infrastructure and safety, begun work on network expansion and track upgradation, etc.

"Further, increase in frequency of train services, including suburban train services, is an on-going process over Indian railways subject to operational feasibility, traffic justification and availability of resources, etc," the minister added.