Lok Sabha Question No. 1988 (UNSTARRED), answered on 2026-02-11
Subject: Criteria for Revision of Passenger Fares
Ministry: RAILWAYS
Asked by: Ms Sayani Ghosh

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## GOVERNMENT OF INDIA

## MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO. 1988 TO BE ANSWERED ON 11.02.2026

## CRITERIA FOR REVISION OF PASSENGER FARES

## 1988. MS SAYANI GHOSH:

Will the Minister of RAILWAYS be pleased to state:

- (a) the criteria and methodology adopted by Indian Railways while deciding to increase passenger fares, including the parameters used to assess the need for fare revision;
- (b)  whether  factors  such  as  operational  costs,  fuel  prices,  inflation, passenger  demand,  service  quality  and  affordability  are  considered while proposing fare hikes and if so, the details thereof;
- (c)  whether  any  committee,  expert  body  or  internal  review  mechanism exists to examine and recommend changes in railway fares and if so, the details thereof;
- (d)  whether  any  consultation  with  passengers,  stakeholders  or  consumer bodies is undertaken before revising fares and if so, the details thereof;
- (e)  the  details  of  the  frequency  and  extent  of  fare  revisions  undertaken
- since 2014, category- wise; and
- (f)  the  details  of  the  steps  taken  to  ensure  that  fare  increases  do  not disproportionately burden low-income and daily passengers?

## ANSWER

MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND

## ELECTRONICS & INFORMATION TECHNOLOGY

(SHRI ASHWINI VAISHNAW)

- (a) to  (f)  Indian  Railways  provides  affordable  transportation  service  to more than 720 crore passengers. The fares of Indian Railways are among the  lowest  in  the  world,  even  when  compared  with  the  neighbouring countries.

Indian  Railway  fixes  the  fares  with  due  consideration  of  the  cost  of service,  value  of  service,  affordability,  competition  from  other  competing modes, socio-economic considerations etc. Fares of different train services are determined also by the type of services/facilities offered. Evaluation of various alternatives for rationalization of passenger fare is a continuous  and  ongoing  process.  Feedback  regarding  various  passenger related  policies  including  passenger  fare  are  being  received  continuously through  various  forums  such  as  passenger  associations,  consultative committees at station, division, zonal levels etc. Indian  Railways  has  undertaken  two  rationalizations  of  passenger  fares during the financial year 2025-26 after a gap of 5 years. These revisions have  been  carried  out  uniformly  and  in  a  calibrated  manner  across applicable  classes.  The  first  rationalization  was  implemented  with  effect from 01.07.2025, in which there was no increase in fare of Second Class Ordinary up to 500 km and thereafter increase of half paisa per passenger per  kilometer  (PKM). There was a  marginal increase in fares of Ordinary (Sleeper Class and First-Class) by half paisa per PKM, in Mail Express NonAC Classes by one paisa per PKM and in AC Classes by 02 paisa per PKM. The second rationalisation was implemented with effect from 26.12.2025, in which there was no increase in fares of Second Class Ordinary up to 215 km and thereafter increase of one paisa per PKM. There was a marginal increase in fares in Ordinary (Sleeper Class and First-Class) by one paisa per PKM and in Mail Express Non-AC Class & AC Classes by two paisa per PKM. The increase in fares has been low, ranging from half paise per km to two paise  per  km  of  travel.  Keeping  the  affordability  concerns  of  low  and middle income passengers, there has been no increase in fare in the last ten years for Suburban service and season ticket holders. It is estimated that less than half the trips will have a marginal increase in fare. The  total  amount  of  subsidy  given  in  FY  2023-24  on  passenger  travel  is provisionally estimated at ₹60,466 Crore. This amounts to a 45% subsidy on  the  cost  of  passenger  travel.  In  other  words,  if  the  cost  of  providing services is ₹100 then the price of ticket is ₹55 only.  Besides this subsidy which  is  common  to  all  passengers,  concessions  are  also  given  to Divyangjans, 11 categories of Patients and 8 categories of Students.

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