IRailways took U-turn on IRCTC, not to take 50% of convenience fee from IRCTC
New Delhi. The government has reversed a major decision related to the revenue sharing of IRCTC within 24 hours. The government had decided to give 50 percent of the amount raised by IRCTC through convenience fees to the government. After this news, there was a tremendous fall in the shares of IRCTC. But after the U-turn of the government, now the recovery is visible in the shares.
The Secretary, Department of Investment and Public Asset Management (DIPAM) said on Friday that the Ministry of Railways has decided to withdraw its decision to share the convenience fee earned by IRCTC on online booking of train tickets. DIPAM Secretary Tuhin Kant Pandey wrote on Twitter, "The Ministry of Railways has decided to withdraw the decision on IRCTC Convenience Fee."
The Indian Railway Catering and Transportation Corporation (IRCTC) on Thursday said the railway ministry has asked it to share 50 per cent of its revenue from bookings on its website with the Indian Railways. IRCTC gets huge revenue from the convenience fee charged by the customers. The fee is not part of the rail fare. It is charged for the online ticket booking service offered by IRCTC.
Just a few days back there was news that IRCTC will share 50% of the convenience fee with the Ministry of Railways
As per the previous news on Oct 28, The Indian Railway Catering & Tourism Corporation Limited (IRCTC), would hand over half of the convenience fee charged from the customers to the government. IRCTC informed the stock market about this today. The company said in a letter sent to the stock exchange that the Ministry of Railways has asked to share the amount raised by the company in the convenience fee in the ratio of 50:50. This decision will come into effect from November 1.
IRCTC will also release its second-quarter results on November 1.
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