Ministry of Railways has decided to increase the passenger fares with effective from the midnight 22-1-2013. This decision was announced by Minister of Railways Shri Pawan Kumar Bansal at a Press Conference held in Rail Bhawan. Minister of State for Railways Shri. Kotla Jaya Surya Prakash Reddy and Railway Board Members were also present. The fare increase, class-wise, as per the following rates:
- Second Class Ordinary Suburban – 2 paise per km
- Second Class Ordinary Non Suburban – 3 paise per km
- Second Class Mail Express Trains – 4 paise per km
- AC chair car – 10 paise per km
- AC first class – 10 paise done earlier + 3 paise per km
- AC two tier – 15 paise done earlier + 6 paise per km
- AC three tier – 10 Paise per km
- AC first class executive class – 30 paise done earlier + 10 paise per km
- First Class – 03 paise per km
- Sleeper Class – 6 paise per km
- It has also been decided to do away with the present practice of levying Development Charge on passenger tickets, and have all chargeable fares in multiples of Rs. 5/-.
Elaborating the rational for fare hike, the Railway Minister, Shri Pawan Kumar Bansal said that basic fares had not been revised upwards in the last ten years He pointed out that Losses in passenger segment which were Rs.6159 Cr in 2004-05 had risen to Rs.19964 Cr in 2010-11 (18% per annum) and is expected to increase to Rs.25000 Cr in 2012-13. The Railway Minister also clarified that the fares will not be hiked in Railway Budget. Bansal said that he expects to get Rs 6,600 crore from the hike, keeping into account the incremental traffic volume as well. Railways is making all efforts to meet user amenity and safety requirements, added Bansal.