Key Points
- Price Reduction: Indian Railways has reduced the Maximum Retail Price (MRP) of its packaged drinking water, Rail Neer, and other shortlisted brands sold on trains and at stations.
- New Prices: A one-litre bottle will now cost ₹14 (down from ₹15), and a 500 ml bottle will cost ₹9 (down from ₹10).
- Reason: The price cut is to directly pass on the benefits of a recent GST rate reduction to passengers.
- Effective Date: The new, lower prices will be effective across the entire railway network from September 22, 2025.
New Delhi: In a passenger-friendly move, the Indian Railways has announced a price reduction for its packaged drinking water, Rail Neer, as well as other approved brands sold on its network. The decision comes as a direct measure to pass on the benefits of a recent GST rate cut to millions of daily travelers.
The new prices, which will come into effect from September 22, 2025, will see the MRP of a one-litre bottle of water reduced from ₹15 to ₹14. Similarly, the price of a 500 ml bottle will be slashed from ₹10 to ₹9.
Passing on GST Benefits
In a circular issued on September 20, the Railway Board instructed all general managers and the CMD of IRCTC to implement the new pricing. The communication explicitly states that the price revision applies not only to Rail Neer but also to all “IRCTC/Railways shortlisted packaged drinking water bottles of other brands sold in railway premises/trains”. This ensures a uniform price for all approved bottled water available to passengers.
The move follows the 56th GST council meeting, which rationalized tax slabs and placed packaged drinking water in a lower tax bracket. By promptly reducing the MRP, the Railways aims to provide immediate financial relief to passengers. The Ministry of Railways confirmed the change, stating on social media, “Health and savings, both together on the journey! Mineral-rich water – Rail Neer, now even more affordable”.
Addressing a Long-Standing Passenger Demand
This price reduction addresses a long-standing demand from passengers for reliable and affordably priced drinking water during their journeys. For years, travelers have raised concerns about being overcharged or sold unverified, counterfeit water brands at stations and on trains. By making the official, purified Rail Neer and other approved brands cheaper, the Railways hopes to increase passenger confidence and curb the sale of unauthorized water.
Rail Neer was first launched by the Indian Railway Catering and Tourism Corporation (IRCTC) in 2003 with the specific goal of providing safe, quality drinking water to enhance passenger amenities. This price cut is expected to further boost its consumption and set a positive example for other companies to pass on tax benefits to their consumers.
