Indian Railways has decided to increase fares for passengers from December 26, after which long distance train journeys will become expensive. However, this increase will not have any impact on suburban (sub-urban) trains and general class travel up to 215 km. This step of Railways is being linked to increasing operating costs and compensation for employee related expenses.
According to the information released by the Railways, the fare has been increased by 1 paisa per kilometer for general class journeys of more than 215 km distance. At the same time, in non-AC classes of mail and express trains, this increase will be 2 paise per kilometer. Passengers traveling in AC coaches will also have to pay 2 paise more per kilometer.
The impact of this increase on passengers’ pockets will be limited but clearly visible. For example, if a passenger travels 500 km in a non-AC coach, he will have to pay around Rs 10 more after the implementation of the new fare. Railways says that the fare increase has been kept as minimal as possible, so that there is not much burden on common passengers.
Railways have cited major expansion of network and operations in the last decade as the reason for increasing the fare. According to the department, during this period, not only the number of trains and routes has increased, but the number of employees and the expenses related to them have also increased rapidly. Railways said that the manpower cost has increased to Rs 1.15 lakh crore, while the expenditure on pension has reached about Rs 60 thousand crore. Moreover, the total operating cost is estimated to reach Rs 2.63 lakh crore in the 2024-25 financial year.
Railways says that from this fare increase it is expected to earn additional income of about Rs 600 crore annually. The department has clarified that to offset rising costs, it is focusing on measures such as increasing cargo loading and limited increase in passenger fares.
It is worth noting that even before this, Railways had increased the fare in July, when the non-AC category of mail and express trains was increased by 1 paise per kilometer and in AC categories by 2 paise per kilometer. At the same time, earlier also on January 1, 2020, train fares were revised. At that time fares in ordinary and second class of mail/express trains were increased by 1 and 2 paise per kilometer respectively, while fares in sleeper and all AC classes were increased by 2 to 4 paise per kilometre.
While this latest decision of Railways will increase the cost of long distance passengers, the department is calling it a necessary step to maintain financial balance and improve future services.
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