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India Today
02-07-2025
- Business
- India Today
Message in smooth train fare hike: A mature Indian who knows a good ride comes at a price
Nothing good comes for free. That's the message loud and clear in the various moves the Narendra Modi government is making in infrastructure. Be it rising highway tolls, heavy-duty bridges and tunnels, or now the latest addition—a hike in train July 1, Indian Railways has increased passenger fares across most long-distance trains: the first such move in five years. But while the hike may pinch slightly on paper, its implications are broader, reflecting a subtle but decisive shift in both public expectations and political fare increase is marginal but with a purpose: 2 paise more per km in AC classes and 1 paisa more in the sleeper and second-class Mail and Express trains. For slow passenger trains, the hike is 0.5 paisa per km and applies only on trips exceeding 500 services and monthly season tickets remain unaffected. The fare for a 1,000 km distance in multi-class passenger trains will be hiked on an average at Rs 10 for economy class and Rs 15 for second class. Still, it adds up. With over 4.8 trillion passenger km of movement expected in FY2025-26, the fare adjustment is projected to net the railways an additional Rs 1,100 crore over the remaining nine months of the financial year. Had it been implemented from April 1, the amount would have crossed Rs 1,450 boost is no small deal in a system where passenger operations are heavily subsidised. Suburban travel recovers barely 30 per cent of its cost; non-AC long-distance journeys about 39 cent. Only AC segments, thanks to their premium pricing, manage a slender surplus of around 3.5 per just as telling as the numbers is the silence. There's been precious little political outrage. No protests. No widespread condemnation. That silence suggests two things: one, that the BJP now believes it can insulate itself from backlash in the wake of such policy decisions, a courage lacking in many predecessors who either delayed fare increases or cloaked them in opaque the Indian passenger appears to have grown up—prepared, albeit grudgingly, to shell out a little more in return for real enhancements of service. Most importantly, there has been radio silence even from railway minister Ashwini Vaishnaw on this on social of this is a far cry from 2014 when the new Modi government had to roll back a proposed hike in suburban fares following a blowback. In comparison, the latest fare hike comes just months before the crucial Bihar could mean that increases in railway fares may finally no longer be the political silver bullet they once were. Some of this change in perception is a consequence of how far Indian Railways has come in recent years. The widening of Vande Bharat routes, the visible station modernisation projects and the cleaner coaches—all of that adds to the fact that the railways is trying to deliver what is more than just status fare hike becomes a piece of a larger narrative then: of passengers paying for, and demanding, better value. To be sure, for a few years now, the railways has been printing the not-so-subtle message on all its tickets that it recovers only half of its cost from ticket last fare hike was in January 2020. It amounted to an increase of 4 paise per km for AC classes and 2 paise for non-AC and suburban services. The shift was made with relatively little political current fare increase is less steep, but it is tied to a several more important process tweaks: Aadhaar-based OTP verification for Tatkal tickets, advance reservation charts eight hours before departure and revised waiting list caps—up to 60 per cent in AC, 30 per cent in sleeper, thanks to more data it does not outright invalidate the Opposition's query: why are you raising fares now, after a record Rs 2.5 lakh crore allocation has been made for railways in Budget 2025-26? Doesn't the government have more money than before?The answer lies in the calculus of operational cost. Salaries, fuel, maintenance, security and the introduction of new services all carry enormous costs. But the expense that pinches the most is the ballooning pension bill, which is within touching distance of Rs 70,000 crore and rising every revenues can bail the railways out only so much. And with passenger earnings projected to climb from Rs 75,215 crore in FY25 to Rs 92,800 crore in FY26, some of it will also be down to making up the shortfall, filling the gap with yet more class-based also the more profound optics of fairness. This still leaves half of all rail passengers—suburban and short-distance in particular—paying highly-subsidised rates, whereas the higher expectations of better-off passengers for clean, punctual and modern trains cannot be carried through cross-subsidisation this hike is just as much about messaging as money. It's the railways asserting itself as a modern, service-driven utility, not a big old legacy network of some other era dragging along the baggage of populism. That said, for the wheels to turn faster, cleaner and more reliably in the future, passengers will have to chip in, perhaps only a little bit. Most of all, it is a shift in the public transport conversation in India: from entitlement to to India Today Magazine- Ends
Economic Times
26-06-2025
- Business
- Economic Times
Indian Railways to hike passenger fares from July 1: Sources
ET Bureau Indian Railways Fare Hike: Check Revised Ticket Price Live Events There will be no increase in suburban fares. Monthly season ticket prices will remain unchanged. In ordinary second class, there will be no fare hike for distances up to 500 km. For distances beyond 500 km in ordinary second class, the fare will increase by half a paise per kilometer. In Mail and Express (Non-AC) trains, the fare will increase by 1 paise per kilometer. In AC classes, the fare will go up by 2 paise per kilometer. (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Indian Railways is set to increase passenger train fares for the first time since the COVID-19 pandemic. The minor increase in fares will be effective from July 1, 2025. Sources told The Economic Times that the passenger fare for non-AC Mail/Express trains will be hiked by 1 paise per kilometre. The fare hike for AC classes will be 2 paise per there will be no increase in fare for suburban tickets and second-class travel for 500 kilometres of travel. For distances greater than 500 kilometres, the hike will be half paise per kilometre. Additionally, there will be no hike in the monthly season are the revised fares that will come into effect on July 1:Earlier this month, Indian Railways made a significant announcement requiring Aadhaar authentication for tatkal train ticket bookings starting July 1, 2025. Through a directive issued on June 10, 2025, the Railway Ministry has informed all railway zones that this new requirement is intended "to ensure that the benefits of the Tatkal Scheme are received by the common end users."The railways' official notice stated that "With effect from 01-07-2025, tickets under Tatkal scheme can be booked through the website of Indian Railway Catering and Tourism Corporation ( IRCTC )/ its app only by Aadhaar authenticated users."The ministry has also announced that beginning July 15, 2025, travellers will be required to complete an additional step of Aadhaar-based OTP authentication whilst booking tatkal new guidelines established limitations on Tatkal ticket reservations for authorised booking agents of Indian representatives are now barred from booking first-day Tatkal tickets within the initial half-hour window. The restriction is effective from 10.00 am to 10.30 am for AC class bookings and from 11.00 am to 11.30 am for non-AC class railway ministry has directed both the Centre for Railway Information Systems (CRIS) and IRCTC to make necessary system modifications and communicate these changes to all zonal railway divisions. This initiative seeks to streamline the Tatkal reservation process for travellers.
The Hindu
24-06-2025
- Business
- The Hindu
Indian Railways considers marginal hike in train tickets from July 1
Train travel is likely to get slightly costlier from next month, with Indian Railways considering a hike in ticket prices from July 1 onwards. According to official sources, the passenger fare for non-AC Mail and Express trains will be hiked by one paisa per kilometre. Similarly, the fare hike for air-conditioned coaches will be two paise per kilometre. However, there will be no increase in fare for suburban tickets and monthly season tickets, nor will there be any fare hike for ordinary second class tickets up to 500 kilometres. 'However, a hike is being considered for train tickets in Ordinary Second Class for a journey distance exceeding 500 km, at the rate of half a paise per km,' official sources added. 'Long overdue' According to data available with the Ministry of Railways, 715 crore passengers travelled by the Indian Railways between April 2024 to March 2025, including 81 crore passengers who travelled in AC and sleeper class, and 634 crore who were unreserved class passengers. The Indian Railways earned ₹75, 750 crore from passenger revenue in the financial year 2024-25. This planned hike in train tickets comes after five years of unchanged fares. M. Jamshed, Former Member (Traffic), Railway Board said that a fare hike of one to two paise per km per passenger was a rationalisation that was long overdue. 'This hike shall contribute to an additional ₹1,500 crore to ₹1,600 crore in passenger revenues. Similar fare hikes took place in 2013, 2014, and in 2020,' Mr. Jamshed told The Hindu. Financial sustainability concerns He added that, even with a fare hike, the financial sustainability of the Indian Railways remains a challenge. 'FY2024-25 has closed with total earnings below the budgetary estimates. Passenger revenue did increase to ₹75,457 crore but still remained below the Budgetary Estimates of ₹80,000 crore. With freight incremental loading of 26 million tons — that is, from 1,591 to 1,617 million tons — the revenue generation was marginal,' Mr. Jamshed said. 'Stiffer targets for FY2025-26 of ₹92,000 crore for passenger revenue are unlikely to be achieved.' 'Aggressive marketing of freight services and a fare hike to reach a level of break even in next five years could be the survival strategy for Indian Railways,' Mr. Jamshed added. A former railway official said that, from an individual passenger's perspective, the hike appears nominal. 'For instance, 2AC fare from Delhi to Mumbai on Mumbai-Central Tejas Rajdhani, which is currently ₹4,245, will increase by around ₹27. With increase in hike, there should also be a focus on improvement of services, like focus on clean toilets and quality meals,' the official added.
