Winning Bizness Desk
Mumbai. Indian Railways has announced an increase in passenger fares for long-distance travel, a move that will come into effect from December 26, 2025. Under the revised structure, passengers travelling more than 215 kilometres will have to pay an additional 1 to 2 paise per kilometre. For instance, a journey from Bhopal to Delhi will now cost around Rs 16 more. The railways estimate that the fare revision will generate an additional annual revenue of nearly Rs 600 crore, providing a financial boost to the national transporter.
Who will pay more from December 26
The fare hike applies only to long-distance passengers crossing the 215-kilometre threshold. Railway officials clarified that the increase has been designed to minimise the impact on short-distance and daily commuters, while still helping the organisation manage rising costs. The revised fares will be automatically reflected in ticket bookings from the effective date, without requiring any separate notification for passengers.
Key points of the fare revision include:
- Additional charge of 1 to 2 paise per kilometre for journeys above 215 km
- Approximate increase of Rs 16 on Bhopal–Delhi route
- Expected annual revenue gain of Rs 600 crore
- No change in fares for journeys below 215 km
Relief for short distance and daily commuters
In a major relief to millions of passengers, Indian Railways has decided not to increase fares for journeys up to 215 kilometres. This means short-distance travel, which forms the bulk of daily rail usage in many states, will remain affordable. The decision is expected to benefit passengers who rely on trains for intercity and regional travel.
Daily commuters in metropolitan cities have also been spared. There will be no change in fares for suburban train services or Monthly Season Tickets. Passengers using local trains in cities such as Mumbai, Delhi, Kolkata and Chennai will continue to pay existing rates, ensuring that the fare hike does not affect routine office-goers and workers.
Why Railways needed to revise fares
According to sources in the Railway Ministry, the decision to increase fares was driven by a steady rise in operational costs and the need to fund large-scale infrastructure projects. Indian Railways is investing heavily in improving passenger amenities, introducing new trains and modernising stations across the country. Maintaining one of the world’s largest rail networks also involves significant expenditure on safety, maintenance and manpower.
The additional revenue of Rs 600 crore will be channelled into:
- Infrastructure development projects
- Introduction of new trains and services
- Station redevelopment and modernisation
- Maintenance of tracks, coaches and signalling systems
Second fare hike in a single year
This is the second time in 2025 that passenger fares have been revised. Earlier, on July 1, the government increased fares for non-AC Mail and Express trains by 1 paise per kilometre, while AC class fares were raised by 2 paise per kilometre. Before that, the last major passenger fare hike was carried out in 2020, after which fares largely remained unchanged for several years.
What passengers should keep in mind
Passengers planning long-distance journeys after December 26 should factor in the marginal increase while booking tickets. While the hike is modest on a per-kilometre basis, it becomes noticeable on longer routes. However, with short-distance and suburban travel untouched, the railways have attempted to strike a balance between revenue generation and passenger convenience.
In summary:
- Fare hike applies only to journeys over 215 km
- Daily and suburban commuters remain unaffected
- Additional revenue to support rail infrastructure and services
