BusinessWed, Dec 24, 2025

Indian Railways Hikes Fares from Dec 26, Targets Rs 600 Cr Revenue Boost

Indian Railways implements its second fare hike in FY26, effective December 26, increasing costs for long-distance AC and Express travel to offset rising operational expenses and generate Rs 600 crore.

Indian Railways Hikes Fares from Dec 26, Targets Rs 600 Cr Revenue Boost

📌Key Points

  • Indian Railways will implement a passenger fare hike from December 26.
  • This is the second fare increase in the current fiscal year (FY26).
  • Fares for AC and non-AC Mail/Express trains will rise by 2 paise per km.
  • Ordinary class fares will increase by 1 paisa per km for journeys over 215 km.
  • No fare hike for suburban trains, Monthly Season Tickets, or ordinary class journeys up to 215 km.
  • The hike is expected to generate Rs 600 crore in additional revenue by March 31, aimed at offsetting rising operational costs, manpower, and pension expenses.
  • The Congress party has criticized the hike and demanded the Railway Minister's resignation.

📰Sources (5)