Indian Railways considers marginal hike in train tickets from July 1
Train travel is likely to get slightly costlier from next month, with Indian Railways considering a hike in ticket prices from July 1 onwards.
According to official sources, the passenger fare for non-AC Mail and Express trains will be hiked by one paisa per kilometre. Similarly, the fare hike for air-conditioned coaches will be two paise per kilometre.
However, there will be no increase in fare for suburban tickets and monthly season tickets, nor will there be any fare hike for ordinary second class tickets up to 500 kilometres. 'However, a hike is being considered for train tickets in Ordinary Second Class for a journey distance exceeding 500 km, at the rate of half a paise per km,' official sources added.
'Long overdue'
According to data available with the Ministry of Railways, 715 crore passengers travelled by the Indian Railways between April 2024 to March 2025, including 81 crore passengers who travelled in AC and sleeper class, and 634 crore who were unreserved class passengers. The Indian Railways earned ₹75, 750 crore from passenger revenue in the financial year 2024-25.
This planned hike in train tickets comes after five years of unchanged fares. M. Jamshed, Former Member (Traffic), Railway Board said that a fare hike of one to two paise per km per passenger was a rationalisation that was long overdue. 'This hike shall contribute to an additional ₹1,500 crore to ₹1,600 crore in passenger revenues. Similar fare hikes took place in 2013, 2014, and in 2020,' Mr. Jamshed told The Hindu.
Financial sustainability concerns
He added that, even with a fare hike, the financial sustainability of the Indian Railways remains a challenge. 'FY2024-25 has closed with total earnings below the budgetary estimates. Passenger revenue did increase to ₹75,457 crore but still remained below the Budgetary Estimates of ₹80,000 crore. With freight incremental loading of 26 million tons — that is, from 1,591 to 1,617 million tons — the revenue generation was marginal,' Mr. Jamshed said. 'Stiffer targets for FY2025-26 of ₹92,000 crore for passenger revenue are unlikely to be achieved.'
'Aggressive marketing of freight services and a fare hike to reach a level of break even in next five years could be the survival strategy for Indian Railways,' Mr. Jamshed added.
A former railway official said that, from an individual passenger's perspective, the hike appears nominal. 'For instance, 2AC fare from Delhi to Mumbai on Mumbai-Central Tejas Rajdhani, which is currently ₹4,245, will increase by around ₹27. With increase in hike, there should also be a focus on improvement of services, like focus on clean toilets and quality meals,' the official added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
an hour ago
- Hans India
Harish urges SEBI to probe serious violations by TGIIC
Hyderabad: BRS senior leader T Harish Rao on Thursday urged Chairman of the Securities and Exchange Board of India (SEBI) to order an urgent investigation into serious irregularities and potential violations of SEBI regulations by the Telangana State Industrial Infrastructure Corporation (TGIIC) and the Government of Telangana. The BRS leader wrote a detailed letter to the SEBI Chairman. In the letter, Harish Rao raised strong objections over the mortgaging of 400 acres of land in the Kancha-Gachibowli region, land which has been flagged by a Supreme Court-appointed Empowered Committee as 'forest-like' and environmentally sensitive. The same land has reportedly been used to raise large sums through Non-Convertible Debentures (NCDs), allegedly without disclosing its legal and environmental status to lenders or investors. 'This is not just a financial violation; it is a betrayal of public trust and a misuse of natural resources for questionable financial engineering,' Harish Rao said. Harish Rao also flagged the financial capacity of TGIIC, noting that its annual turnover was reportedly less than Rs 150 crore, while it is raising thousands of crores rupees through NCDs, a move that raises red flags over repayment ability and disclosure norms. He further questioned the recent conversion of TGIIC from a private limited company to a public limited company, alleging that this structural change may have been carried out without full regulatory transparency or compliance with the Companies Act and SEBI guidelines. Rao further said that merchant bankers were paid over Rs 169 crore plus GST to structure these transactions, despite the questionable status of the land used as collateral. 'This issue concerns not only regulatory compliance, but also environmental responsibility and public interest,' he wrote, urging SEBI to investigate the entire chain of transactions and hold all parties accountable.
Time of India
6 hours ago
- Time of India
Ahmedabad plane crash: Tata Sons to set up Rs 500 crore trust for victims' families
MUMBAI: The main owner of Air India, following the devastating flight 171 crash that became the most severe aviation disaster in a decade, will set up a welfare trust for affected families. Tata Sons , which owns about 74% of Air India, intends to allocate Rs 500 crore to the foundation, to be called AI171 Trust. Sources indicate that Tata Trusts, the largest shareholder of Tata Sons, is expected to contribute an equivalent sum. The crash claimed over 250 lives, with 241 passengers on board and 19 individuals on the ground. Tata Sons and Air India have previously announced a joint financial assistance of Rs 1.25 crore to the families of the deceased. Apart from Tata Sons, Singapore Airlines owns around 25% of Air India while the employee trust holds the remaining 1%. Sources said the Tata Sons board approved the welfare trust proposal on Thursday. The next steps involve legal procedures, including registration of the public charitable trust, and formation of the board of trustees. Tata Sons chairman N Chandrasekaran is expected to lead the AI171 Trust, which will include non-Tata members. This initiative mirrors Indian Hotels' (Taj chain) response to the 26/11 Mumbai terror attacks. The company established the Taj Public Service Welfare Trust in Dec 2008 to assist victims, families, security forces, and affected employees. The Taj Mahal Palace hotel lost 36 individuals, including staff members, during the attacks. The Taj Public Service Welfare Trust subsequently broadened its scope beyond 26/11 victims, extending support to injured and specially-abled soldiers and to migrant workers, frontline staff and healthcare professionals during the pandemic. The unscheduled Tata Sons board meeting on Thursday comes two days after its director and Tata Trusts chairman Noel Tata visited the crash site and injured patients in Ahmedabad. The meeting took place 29 days subsequent to its previous board assembly. During the May 29 meeting, the board had approved the financial statements for Q4 and fiscal year ending March 31, 2025, while also approving capital investments over Rs 30,000 crore for new businesses, including semiconductor projects and Air India. Chandrasekaran, who is also the chairman of Air India, has increased his involvement in the airline's operations after the incident. His engagement includes interactions with govt officials, supervising safety assessments and aircraft maintenance. Total compensation claims arising from the Air India crash could reach $475 million, driven by liability payouts estimated at $350 million, due to the involvement of over 50 foreign passengers. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
13 hours ago
- The Hindu
Harish Rao urges SEBI to probe Gachibowli land deal made in violation of norms
HYDERABAD Senior leader of the Bharat Rashtra Samithi and former minister T. Harish Rao has requested the Chairman of the Securities and Exchange Board of India (SEBI) to order an investigation into serious irregularities and potential violations of SEBI regulations by the Telangana State Industrial Infrastructure Corporation (TGIIC) and the Government of Telangana. In the letter addressed to the SEBI Chairman on Thursday, Mr. Harish Rao raised strong objections over the mortgaging of 400 acres of land in Kancha Gachibowli in the city, and it has been flagged by a Supreme Court-appointed Central Empowered Committee as 'forest-like' and environmentally sensitive. The land has reportedly been used to raise a huge loan through Non-Convertible Debentures (NCDs,) allegedly without disclosing its legal and environmental status to lenders/investors. 'This is not just a financial violation, but it is also misuse of natural resources for questionable financial engineering', Mr. Harish Rao said. Flagging the financial capacity of TGIIC, he noted that its annual turnover was reportedly less than ₹150 crore, while it was raising thousands of crores through NCDs, a move that raises red flags over the repayment ability and disclosure norms. He further questioned the recent conversion of TGIIC from a private limited company to a public limited company, alleging that this structural change could have been carried out without full regulatory transparency or compliance with the Companies Act and SEBI guidelines. Further, Mr. Harish Rao stated in the letter to SEBI that merchant bankers were paid over ₹169 crore plus GST to structure these transactions, despite the questionable status of the land used as collateral. He requested SEBI to investigate the entire chain of transactions and hold all parties accountable, and provided supporting documents.
