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Big relief for IRCTC! Railway Ministry withdraws decision on sharing 50 percent convenience fee
IRCTC had on Thursday said that the Ministry of Railways has asked it to share 50 percent of its revenue earned as convenience fee from bookings on its website with the national transporter.
Highlights
- Indian Railways currently earns from a slew of sources.
- Railway Ministry announced to withdraw order on convenience fees sharing.
- IRCTC stocks have now recovered.
New Delhi: In what would come as a huge respite for Indian Railways Catering and Transportation Corporation (IRCTC), the Ministry of Railways has decided to withdraw its decision on sharing of convenience fee earned by IRCTC on online bookings of train tickets.
"Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee," DIPAM Secretary Tuhin Kanta Pandey tweeted on Friday.
IRCTC had on Thursday said that the Ministry of Railways has asked it to share 50 percent of its revenue earned as convenience fee from bookings on its website with the national transporter.
Convenience fees charged from customers generated a sizable revenue for IRCTC. The fee is not part of the rail fare. It is for the service of online ticket booking offered by the IRCTC.
Shares of IRCTC on Friday tanked nearly 10 per cent in opening trade to Rs 822.40 apiece. However, soon after the decision of withdrawal broke, the stocks recovered some ground and was trading at 887.35, down 2.89 per cent on the BSE.
IRCTC listed on the stock exchanges on October 14, 2019 at Rs 644 a piece after selling shares at Rs 320 apiece in an initial public offering.
With PTI Inputs
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