BS EDIT: Railway Fare Hike: A Step Forward or Just Symbolic?

By Business StandardPublished On Jun 30, 2025

What’s New

Passenger fares will rise from July — 2 paise/km for AC class, 1 paisa/km for sleeper, and 0.5 paisa/km for second class

Suburban fares stay the same

Small Gains, Big Gap

The hike adds ₹700 crore to the books — barely a dent in the ₹92,800 crore revenue target

Freight Burden Grows

Freight cross-subsidises passengers but is losing ground to road transport

Coal reliance adds risk

Capex Still Starved

Most revenue funds salaries and pensions, leaving little for upgrades or safety

Operating ratio: 98%

Capacity Limits

Congested routes and low speeds deter high-value freight

Corridors help, but progress is slow

Deeper Fix Needed

Without clear commercial-social goals, the railways can’t modernise

Fare tweaks alone won’t be enough