Railways likely to implement marginal fare hike from July 1

After several years of a freeze on fares, the Indian Railways is likely to roll out a new fare tariff effective July 1, 2025. The Ministry of Railways has not officially announced this, but if it happens, it will mark the first such hike in years. The formal announcement is expected as early as later this week.

For non-AC Mail Express trains, fares will go up by 1 paisa per km, while AC classes will see an increase of 2 paise per km. As per the proposed structure, suburban fares and monthly season ticket prices will remain unchanged. In ordinary second class, there will be no fare hike for journeys up to 500 km; beyond that, the fare will increase by half a paisa per km.

Media reports suggest that the Railway Board has moved a proposal to the Ministry of Railways regarding the minor fare hike, and discussions in this regard are in the final stages. The fare hike could be aimed at increasing revenue amid rising costs. Additionally, the Indian Railways has launched several projects in recent years to expand the railway's reach. The Indian Railways network is one of the largest in the world, with a total route length of around 69,181km as of March 31, 2024, making it the lifeline for millions of Indians.

Between April and October 2024, 17 new pairs of Vande Bharat trains were introduced to the railway network, and 228 coaches were produced, as per the Economic Survey 2024-2025.

Other recent initiatives in the rail system include the Gati Shakti multi-modal cargo terminal; railways' targets of 30 GW of renewable energy by 2029-30, with 375 MW of solar and 103 MW of wind commissioned as of October 2024; and 434 major economic corridor projects valued at ₹11.17 lakh crore.

The Survey shows that under the Public-Private Partnership (PPP) model, 17 projects have been completed (₹16,434 crore) and 8 are ongoing (₹16,614 crore). One of the major such projects is the Mumbai-Ahmedabad High-Speed Rail Project, which was sanctioned in December 2015. This 508 km project, supported by Japan, has a revised cost of ₹1.08 lakh crore. As of October 2024, it has achieved 47.17% physical progress with an expenditure of ₹67,486 crore.

The Indian Railways is also undertaking several initiatives to enhance passenger experience and station amenities, including the Amrit Bharat Station Scheme, Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs), and mobile catering service, which has resulted in the establishment of 557 base kitchens servicing 468 pairs of trains, among others.