State Railway of Thailand (SRT) has approved a fare reduction proposal for the mass rapid transit (MRT) Red and Purple lines, setting the fare at 20 baht.

SRT governor Nirut Maneephan said on Friday that the board had given the green light to the 20-baht flat fare proposal.

The Red Line has 13 stations, connecting Taling Chan and Rangsit, while the Purple Line, with 16 stations, runs between Bang Sue and Khlong Bang Phai.

The governor said he expected that the fare proposal would align with the new Transport Minister’s 20-baht fare policy, which he referred to as a "New Years's gift" to the public.

"After the cabinet's approval of the proposal, the SRT will hold talks with the Mass Rapid Transit Authority of Thailand (MRTA) and Krungthai Bank (KTB) to improve the software systems of the Red Line and the Purple Line, allowing them to interconnect," said Mr Nirut.

According to a study on the flat fare reduction, the SRT would lose revenue and the government would need to provide compensation of about 80 million baht per year. However, the fare reduction is expected to encourage changes in passenger behaviour, as more people would use electric train services. This shift would increase the number of passengers by 5-20% annually and would boost the SRT's revenue, said the SRT governor.

Currently, the Red Line caters to approximately 20,000 passengers a day, he added.