Business Desk, Amar Ujala, New Delhi

Published by: Mukesh Kumar Jha
Updated to Friday, 29 October 2021 01:07 PM IST

Summary

The IRCTC on Thursday asked the Railway Ministry to share 50 per cent of the revenue generated through bookings on its website with Indian Railways.

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The Railway Ministry on Friday reversed a decision taken yesterday by the Indian Railway Catering and Tourism Corporation (IRCTC) regarding convenience fees. Nearly 19 hours later the cabinet reversed its decision. The Secretary of the Department of Investment and Public Asset Management provided this information via tweet. “The Ministry of Railways has decided to withdraw the decision on IRCTC convenience fees,” he said. With this decision of the Railways, customers will not get cheap tickets. The IRCTC on Thursday asked the Railway Ministry to share 50 per cent of the revenue generated through bookings on its website with Indian Railways.

Following the Railway Ministry’s decision, IRCTC stock fell 29 per cent to a low of Rs 650.10 on the BSE on Friday. However, IRCTC shares recovered 39 per cent to close at Rs 906 after the government’s announcement. Convenience fees charged from customers provide huge revenue to IRCTC. Fees are not part of the train fare. It is charged for the online ticket booking service provided by IRCTC. IRCTC shares fell 20 per cent on Thursday following a decision by the Railway Board.

Expansion

The Railway Ministry on Friday reversed a decision taken yesterday by the Indian Railway Catering and Tourism Corporation (IRCTC) regarding convenience fees. Nearly 19 hours later the cabinet reversed its decision. This was stated by the Secretary, Department of Investment and Public Asset Management in a tweet. “The Ministry of Railways has decided to withdraw the decision on IRCTC convenience fees,” he said. With this decision of the Railways, customers will not get cheap tickets. The IRCTC on Thursday asked the Railway Ministry to share 50 per cent of the revenue generated through bookings on its website with Indian Railways.

IRCTC stock fell 29 per cent to a low of Rs 650.10 on the BSE on Friday, following a decision by the Railway Ministry. However, IRCTC shares recovered 39 per cent to close at Rs 906 after the government’s announcement. Convenience fees charged from customers provide huge revenue to IRCTC. Fees are not part of the train fare. It is charged for the online ticket booking service provided by IRCTC. IRCTC shares fell 20 per cent on Thursday following a decision by the Railway Board.

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