Despite the general view that passenger fares would remain unchanged, Railway Minister Dinesh Trivedi implemented an across-the-board hike in his maiden Railway Budget.
First class Ac fares have been raised by as much as 30 paise per km. The increase in other classes is: 15 paise per km for AC 2-tier travellers, 10 paise for 3-tier passengers and three paise per km for sleeper class.
Fares on suburban networks have become dearer by two paise per km.
Platform tickets will now cost Rs 5 versus Rs 3 currently.
The fare increase is estimated to generate an additional Rs 4,000 crore in revenue for the Railways.
Trivedi also announced introduction of 75 express trains, 21 passenger trains and extension of 39 trains besides increase in the frequency of 23 trains.
In his over 100-minute speech, Trivedi said these were aimed at rationalising the fares to cause "minimal impact" on the common man and "to keep the burden within tolerance limits in general".
He said he had been counselled to go for steep increase in passenger fares as there had been no increase in last eight years but he desisted from doing so "guided by the overriding concern for aam aadmi [common man]".
The proposed adjustments, he said, do not even cover fully the impact of increase in fuel prices during the last eight years.
"I am keeping the valuable passengers of Indian Railways insulated from the burden of increasing staff cost," he said.