Indian Railways withdraws decision on sharing convenience fee with IRCTC
Convenience fees charged from customers is not part of the rail fare and generates a sizeable revenue for IRCTC
The DIPAM Secretary in a tweet on Friday said that the Ministry of Railways has made a U-turn on its decision on sharing of convenience fee earned by Indian Railways Catering and Transportation Corporation (IRCTC) on online bookings of train tickets.
Secretary Tuhin Kanta Pandey’s tweet read: “Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee”.
Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee pic.twitter.com/HXIRLxXTlL
— Secretary, DIPAM (@SecyDIPAM) October 29, 2021
IRCTC on Thursday, said that the Ministry of Railways has asked it to share 50% of its revenue earned as convenience fee from bookings on its website with the national transporter.
Convenience fees charged from customers is not part of the rail fare and generates a sizeable revenue for IRCTC. It is charged for the service of online ticket booking offered by the IRCTC.
IRCTC shares on Friday slumped by almost nearly 10% in the opening trade to Rs 822.40 a piece. It regained lost ground after the government withdrew its decision on IRCTC convenience fee and was trading at Rs 887.35, which was down by 2.89% on the BSE.
IRCTC was first listed on the bourses on October 14, 2019 at Rs 644, after selling shares at Rs 320 in an Initial Public Offering (IPO).