IRCTC on Thursday said that the Ministry of Railways has asked it to share 50 per cent of its revenue from bookings on its website with the Indian Railways.
The Railway Ministry on Friday withdrew yesterday’s decision related to the Indian Railway Catering and Tourism Corporation (IRCTC) convenience fee. The ministry has changed its decision after about 19 hours. The Secretary of the Department of Investment and Public Asset Management gave this information by tweeting.
“The Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee,” he said. With this decision of Railways, customers will not get cheap tickets. IRCTC on Thursday said that the Ministry of Railways has asked it to share 50 per cent of its revenue from bookings on its website with Indian Railways.
After the decision of the Ministry of Railways, IRCTC stock fell 29 per cent to a low of Rs 650.10 on the BSE on Friday. However, after the government’s clarification, IRCTC’s stock recovered by 39 per cent and reached the level of Rs 906. The convenience fee charged from the customers generates a huge revenue for IRCTC.
The fee is not part of the rail fare. It is charged for online ticket booking service offered by IRCTC. IRCTC’s stock had fallen 20 per cent after the Railway Board’s decision on Thursday.
Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee pic.twitter.com/HXIRLxXTlL
— Secretary, DIPAM (@SecyDIPAM) October 29, 2021
