Train fares among world's lowest, ₹60,466 crore passenger subsidy given in FY24: Railway Minister Ashwini Vaishnaw
Union railway minister Ashwini Vaishnaw on Wednesday said the Indian Railways is providing affordable transportation service to over 720 crore passengers and that train fares are among the lowest in the world, even when compared with neighbouring countries.The total amount of subsidy given in FY 2023-24 on passenger travel was provisionally estimated at ₹60,466 crore. "It amounts to a 45 per cent subsidy on the cost of passenger travel. In other words, if the cost of providing the service is 100, then the price of the ticket is 55 only. This subsidy is continuing for all passengers. Further, concessions beyond this subsidy amount are continuing for many categories of persons with disabilities (Divyangjans), 11 categories of patients, and 8 categories of students," he said."Fares were rationalised with effect from July 1, 2025, after a gap of over five years. The increase in fares is very low, ranging from half paisa per km to two paise per km for premium classes. There is no increase in general class up to 500 km and thereafter a half paisa increase in fare per passenger per kilometre. A half paisa increase in fare per passenger per kilometre in sleeper class ordinary and first-class ordinary," the minister said."The fare revision is likely to have an insignificant impact on the total amount of subsidy because the revision ranges from half paise to two paise only per kilometre of travel. It is estimated that less than half the trips will have a marginal increase in fare. For example, for a low-income traveller in general coaches, there is no fare increase for 500 km travel," Vaishnaw said in reply to questions from 12 MPs of various parties, including Hyderabad MP Asaduddin Owaisi in the Lok Sabha.The minister listed various schemes, infrastructure improvements, and other initiatives undertaken by the railway ministry to provide safe, comfortable, and quality services to passengers.
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