All section Close
Image Credit: Hindustan Times
Quick Turnaround! Ministry Of Railways Withdraws Convenience Fee Decision On IRCTC
Writer: Abbas Rizvi
He is a voracious reader who likes to read about the world. Research and Fact Checking are his area of work. He likes to think before speaking.
India, 29 Oct 2021 1:49 PM GMT
Editor : Madhusree Goswami |
A mountain girl trying to make it big in the city. She loves to travel and explore and hence keen on doing on-ground stories. Giving the crux of the matter through her editing skills is her way to pay back the journalism its due credit.
Creatives : Abbas Rizvi
He is a voracious reader who likes to read about the world. Research and Fact Checking are his area of work. He likes to think before speaking.
The shares of IRCTC, which jumped up as much as 30 per cent earlier, were down to 5.2 per cent.
The Ministry of Railways has decided to withdraw its decision to ask its catering and tourism arm, the Indian Railways Catering and Tourism Corporation (IRCTC), to share half of all the convenience fee revenue it earns
" Ministry of Railways has decided to take back its decision on IRCTC convenience fee," DIPAM Secretary Tuhin Kanta Pandey tweeted.
See-Saw Of Shares
The shares of IRCTC, which jumped up as much as 30 per cent earlier, were down to 5.2 per cent. The blue-chip NSE (National Stock Exchange) Nifty 50 index edged up 0.14 per cent to 17,881 by 10:46 am, and the benchmark S&P BSE (Bombay Stock Exchange) Sensex inched higher 0.17 per cent to 60,089.27, after a more than 1 per cent drop in early trade on Friday, October 29. Both indexes were down over 1 per cet so far this week.
In 2014, sharing started in the ratio of 80:20 between Indian Railways and IRCTC. The ratio was changed to 50:50 in 2015, but the charge remained withdrawn for three years from November 2016. On Thursday, Octoner 28, IRCTC said that the Ministry of Railways had asked it to share 50 per cent of its revenue generation earned as a convenience fee from bookings on its website with the national transporter. This arrangement had been discontinued since the COVID pandemic, reported Hindustan Times.
The convenience fees charged from customers generated a reasonable revenue for IRCTC. The convenience fee is not part of the rail fare and is for the online ticket booking service offered by IRCTC. The IRCTC is the only organization authorized to manage food services on trains and has a monopoly in the catering and online ticketing services for the Indian Railways.
Also Read : China's Efforts For 'Civilised Internet' For Reshaping Online Behaviour
Must Reads
We are an independent and public-spirited digital media platform for Indian millennials. We report news and issues that matter as well as give you the opportunity to take action.
