The Indian Railways fare revision aims to strengthen finances while protecting affordability for short-distance travellers.The new passenger fares system will take place from the 26th of encouraging long-distance travel and continuing to provide affordable service for short distances. Because of this, there will be no fare increase for those travelling up to 215 km. For those on a longer trip, the fare will only increase slightly, by one paise for each extra kilometre travelled past 215 km for passengers in ordinary class, and by two paise for passengers in Non-AC and AC classes on Mail and Express trains.

According to railway officials, this fare structure will create a balance between passengers’ ability to pay and the financial stability of the railways, and, for example, a 500 km Non-AC trip will only cost a passenger ten rupees more than before. Officials, therefore, said that the overall impact on passengers will be both manageable and expected to be limited.
The revenue generated from this revision is projected to be approximately 600 crores of rupees and this additional revenue is required to fund the increase in operating costs and maintenance costs being experienced by the railways. In addition, the railways continue to offer the same amount of service to passengers on a regular basis, and monthly season passes will not increase anywhere in the country. Officials said that this decision was made to protect daily commuters and low-income families.
The Ministry of Railways stated that there is also a significant impact of an increased number of employees and pension costs as pressures for the railways continued to grow. The current operating cost of the railways for the financial year remains very high.
Special trains and infrastructure upgrades follow Indian Railways fare revision
In addition to increasing travel costs, Indian Railways has introduced additional services over the upcoming festival season. Authorities have committed to operating 244 additional trains across all 8 zones. The additional train services will accommodate the anticipated increase in travel volume during Christmas and New Year, especially on routes between Delhi and Howrah and Lucknow. An increased number of additional trains have been deployed along the busy rail lines between Mumbai and Goa and through all other routes in Maharashtra. According to railway officials, the above measures will help reduce the amount of overcrowding on normal passenger train services.
While announcing additional services, the Ministry of Railways has pointed out the success of the July fare increase. Following the fare increase in July last year, the return on investment has netted approximately 700 crore rupees. Fare rationalisation will contribute to the long-term viability of Indian Railways and provide continued financial resilience.
Railway project officials outlined hard facts about current progress being made nationwide on major railway infrastructure projects and explained that land acquisition for the Mumbai-Bullet train project had been completed in 100% of locations. From 2014 until 2025, the Government of India acquired additional locomotives and wagon capacity that was required to handle the projected freight growth associated with its Gati Shakti cargo terminal projects. The Government of India has also electrified almost its entire Broad-Gauge network between the years of 2014 and 2025.
According to senior railway officials, investments in all of the above-related initiatives will improve railway efficiency, safety, and reliability when providing service to the public. Indian Railways’ June fare increase is within the context of much broader goals focused on facilitating the ongoing state-of-the-art upgrade of Indian Railways and accommodating forecasted growth in capacity.
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