Railway Minister Ashwini Vaishnaw recently said that Indian Railways provides the cheapest train travel for passengers compared to neighboring countries. Addressing the Rajya Sabha on Monday, Vaishnaw informed that for a 350 km distance, the Indian Railways charges a mere ₹121 in general class, which is way lesser than the fares in Pakistan (₹435), Sri Lanka (₹413), and Bangladesh (₹323).
Vaishnaw pointed out that passenger fares in developed countries in the West are 10% to 20% more than Indian fares. He further added that Indian Railways has not raised passenger fares since 2020.
The minister went on to clarify that the cost of rail travel per kilometer is ₹1.38, but only 73 paise is charged from passengers. This implies that Indian Railways is providing a 47% subsidy on fares. He further stated that during the financial year 2022–23, the government gave a subsidy of ₹57,000 crore, which rose to approximately ₹60,000 crore in 2023–24 (provisional figures).
Vaishnaw stated that the government is concerned with the welfare of the poorest segments of society. “The number of general coaches is being increased to 2.5 times that of AC coaches,” he added. According to the existing production plan, 17,000 non-AC coaches will be produced.
The minister added that Indian Railways’ financial health is stable, with an annual income of around ₹2.78 lakh crore and expenditure of ₹2.75 lakh crore. “The Railway’s major expenses are being met through its own income, which is a result of its strong performance,” Vaishnaw said. He also pointed out that Indian Railways has overcome the pandemic woes of COVID-19, with growth in passenger as well as freight transportation.
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