Passengers to pay more as Indian Railways hikes fares from July 1

Indian Railways hikes fares: Indian Railways is set to implement a marginal fare hike for passenger trains, effective from July 1, 2025. This will be the first such increase in several years, with the last notable hike occurring in 2020. The move comes as the Indian Railways aims to balance rising operational and maintenance costs while continuing significant network expansion and enhancement of passenger facilities.

Indian Railways hikes fares: Breakdown of the fare hike

Non-AC Mail/Express Trains: These popular train categories will see a fare increase of 1 paisa per kilometer. For example, a 1000 km journey in a non-AC Mail/Express train will cost ₹10 more.

AC Trains (All Classes): All AC classes, including AC Chair Car, AC 3-Tier, AC 2-Tier, and First Class AC, will experience a hike of 2 paise per kilometer. This means a 1000 km journey in an AC coach would cost an additional ₹20.

The primary reasons cited for this fare adjustment include:

Rising Operational Costs: Indian Railways faces increasing expenses related to fuel, electricity, staff salaries, and maintenance of its vast network and rolling stock.

Infrastructure Development: The Railways is undertaking numerous projects for network expansion, modernization, and improving passenger amenities, which require significant investment. Projects like the Amrit Bharat Station Scheme and the Mumbai-Ahmedabad High-Speed Rail Project are examples of such investments.

Minimising Financial Burden: Despite the hike, the Railways aims to keep the increase minimal to avoid a substantial financial impact on passengers, especially daily commuters and those traveling short distances. Reports suggest that currently, passengers are charged only about 73 paise per kilometer against a cost of ₹1.38 per kilometer, indicating a significant subsidy.

Impact on Passengers:

While the per-kilometer increase seems small, it will be noticeable for long-distance and frequent travelers. For instance, a 2000 km journey in an AC train would cost ₹40 more. However, the exemptions for suburban trains, MSTs, and short-distance ordinary second-class travel are intended to cushion the impact on the majority of daily and short-haul commuters.

Accompanying Changes to Tatkal Booking Rules:

In a separate but related development aimed at enhancing transparency and curbing misuse, Indian Railways has also announced significant changes to its Tatkal (instant) ticket booking system, effective from July 2025:

Mandatory Aadhaar Authentication: From July 1, 2025, only Aadhaar-authenticated users will be able to book Tatkal tickets through the IRCTC website and mobile app.

OTP Verification: Starting July 15, 2025, an additional step of Aadhaar-based OTP authentication will be required for all Tatkal bookings, whether online or at computerized Passenger Reservation System (PRS) counters and through authorized agents. The OTP will be sent to the mobile number linked to the user’s Aadhaar.

Restrictions on Agents: Authorised booking agents will be barred from booking Tatkal tickets during the initial 30 minutes of the booking window (10:00 AM to 10:30 AM for AC classes and 11:00 AM to 11:30 AM for non-AC classes).

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