Begin typing your search above and press return to search.
proflie-avatar
Login
exit_to_app
DEEP READ
exit_to_app
Homechevron_rightIndiachevron_rightRailways likely to...

Railways likely to hike fares for AC, Sleeper and General Classes from July 1

text_fields
bookmark_border
Railways likely to hike fares for AC, Sleeper and General Classes from July 1
cancel

In a bid to increase earnings from the passenger segment, the Ministry of Railways is likely to implement a fare hike across AC Classes, Sleeper Class and Second Class from 1 July, while suburban fares and monthly season tickets are expected to remain unaffected, it is learnt.

The fare increase, which is currently under consideration at the highest level, is expected to be notified shortly and may involve a revision of two paisa per kilometre for AC Classes, one paisa per kilometre for Sleeper Class, and half a paisa per kilometre for Second Class (General) for journeys exceeding 500 kilometres, according to The Indian Express,

Based on projections of passenger kilometres (PKM), the proposed revision is expected to generate approximately ₹700 crore in additional revenue during the remainder of the current financial year 2025–26, whereas for the entire fiscal year, the increase would have yielded over ₹920 crore.

The Ministry has projected a passenger segment revenue of ₹92,800 crore for FY26, expecting an uptick in passenger numbers, whereas in FY25, with over 736 crore passengers travelling, the total passenger earnings stood at ₹75,215 crore.

While the Railways derives nearly 65 per cent of its overall revenue from freight, the passenger segment contributes close to 30 per cent, with the remainder coming from miscellaneous sources; yet within the passenger category, AC Classes contribute around 54 per cent of revenue despite accounting for only 4.8 per cent of total passengers.

Sleeper and General Classes together carry nearly 37 per cent of passengers, whereas the suburban network, which remains untouched by the current proposal, accounts for a dominant 57 per cent of the total ridership.

The last revision of passenger fares took place in January 2020, when the Ministry increased the rates for Sleeper Class by two paisa per kilometre and for AC Classes by four paisa per kilometre, while leaving suburban fares and season tickets unchanged.

In May 2022, suburban fares were further rationalised, with the basic fare of AC EMU services reduced by 50 per cent and that of First Class single journeys cut by 41 to 49 per cent, in a move aimed at boosting affordability and ridership.

The latest proposal comes in the wake of a recommendation made by the Standing Committee on Railways in December 2024, which had urged the Ministry to realign AC fare structures with operational costs to reduce the deficit in the passenger segment, while maintaining affordability for General Class travellers in view of the Railways’ social obligations.

Show Full Article
TAGS:Indian RailwaysMinistry of Railways
Next Story