New Delhi, Dec. 21 -- Indian Railways has decided to increase passenger train fares again across all classes from 26 December, the second time it is doing so after July this year. The fare hikes, ranging from one to two paise per kilometre, will earn the transporter about Rs.600 crore in the remaining period of this fiscal year.

According to the ministry of railways, the second fare rationalization this fiscal would streamline tariff structures and enhance financial sustainability of passenger services.

Indian Railways makes losses on passenger transport across classes that with fares that are about 45% below cost. Freight charges cross subsidize passenger fares.

The revision effective from Friday would see fares for ordinary second cl...