Railways Spent Rs 604.7 Billion on Passenger Subsidy in FY24

26 Jul 2025 CW Team

In a written response to questions from multiple Members of Parliament regarding the recent rail fare hike, Vaishnaw stated that the Indian Railways continues to offer one of the most affordable transport services globally, ferrying over 7.2 billion passengers annually.

"The total amount of subsidy provided in FY 2023–24 on passenger travel is provisionally estimated at Rs 604.66 billion, amounting to a 45 per cent subsidy on travel costs," he said.

He further clarified that fares were "rationalised" from 1 July this year, marking the first adjustment in more than five years. The fare increase is minimal, ranging from half a paisa to two paise per kilometre, depending on the class of travel.

According to the minister, there is no fare hike in second-class ordinary coaches for journeys up to 500 kilometres. Beyond that, the increase is limited to half a paisa per kilometre per passenger. Similarly, sleeper class and non-reserved first-class fares have seen a half paisa increase, non-AC classes in Mail and Express trains have risen by one paisa, while reserved AC classes have gone up by two paise per kilometre.

To ensure affordability for lower and middle-income passengers, Monthly Season Tickets (MSTs) and suburban train fares remain unchanged. Vaishnaw stressed that fewer than half of all passenger trips will witness any fare increase at all. For instance, low-income passengers travelling in general coaches for 500 kilometres will not face any additional charges.

The minister also noted that Indian Railways is undertaking projects to improve suburban infrastructure, including track upgrades and network expansion. Enhancing the frequency of both suburban and mainline services remains an ongoing priority, he added, subject to feasibility and available resources.

New Delhi – The Indian Railways provisionally spent Rs 604.7 billion in subsidies during the financial year 2023–24, covering 45 per cent of passenger travel costs, Railway Minister Ashwini Vaishnaw informed the Lok Sabha on Wednesday.In a written response to questions from multiple Members of Parliament regarding the recent rail fare hike, Vaishnaw stated that the Indian Railways continues to offer one of the most affordable transport services globally, ferrying over 7.2 billion passengers annually.The total amount of subsidy provided in FY 2023–24 on passenger travel is provisionally estimated at Rs 604.66 billion, amounting to a 45 per cent subsidy on travel costs, he said.He further clarified that fares were rationalised from 1 July this year, marking the first adjustment in more than five years. The fare increase is minimal, ranging from half a paisa to two paise per kilometre, depending on the class of travel.According to the minister, there is no fare hike in second-class ordinary coaches for journeys up to 500 kilometres. Beyond that, the increase is limited to half a paisa per kilometre per passenger. Similarly, sleeper class and non-reserved first-class fares have seen a half paisa increase, non-AC classes in Mail and Express trains have risen by one paisa, while reserved AC classes have gone up by two paise per kilometre.To ensure affordability for lower and middle-income passengers, Monthly Season Tickets (MSTs) and suburban train fares remain unchanged. Vaishnaw stressed that fewer than half of all passenger trips will witness any fare increase at all. For instance, low-income passengers travelling in general coaches for 500 kilometres will not face any additional charges.The minister also noted that Indian Railways is undertaking projects to improve suburban infrastructure, including track upgrades and network expansion. Enhancing the frequency of both suburban and mainline services remains an ongoing priority, he added, subject to feasibility and available resources.

Infrastructure Transport

01 Jun 2026

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Infrastructure Urban

01 Jun 2026

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Infrastructure Urban

01 Jun 2026

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..