Indian Railways spent Rs 60,466 crore in subsidy for passengers in FY24: Govt

New Delhi, July 23 The Indian Railways spent a massive Rs 60,466 crore in subsidies for passenger travel in the financial year 2023–24, the Parliament was informed on Wednesday.

This subsidy covers 45 per cent of the actual cost of passenger travel -- making train journeys in India among the most affordable in the world.

Responding to questions raised by several Lok Sabha members on the recent hike in rail fares, Railway Minister Ashwini Vaishnaw said that Indian Railways continues to provide affordable transport to over 720 crore passengers annually.

He also said that, even after the fare revision, Indian train tickets are still cheaper compared to those in many neighbouring countries.

The fare revision came into effect from July 1, after more than five years without any hike.

The minister clarified that the increase is very minimal -- ranging from just half a paisa to two paisa per kilometre, depending on the class of travel.

In second class ordinary travel for up to 500 km, there is no increase in fare. For distances beyond 500 km, the hike is only half paisa per km.

Similarly, fares in sleeper class, ordinary, and first-class ordinary have been increased by half paisa per km, while non-AC Mail Express classes saw a 1 paisa per km rise. For reserved AC classes, the increase is 2 paisa per km.

To protect low- and middle-income passengers, the government has not increased fares for Monthly Season Tickets (MST) and suburban trains, which are mainly used by daily commuters.

Vaishnaw also assured the house that less than half the total train journeys would see any fare increase.

"For example, there is no change in fare for a 500 km journey in a general coach," he said.

To further improve the rail travel experience, the Railway Minister said that the government is working on expanding the network, upgrading tracks and increasing the frequency of suburban train services wherever feasible.

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