Indian Railways withdraws IRCTC convenience fee sharing decision; Here’s why
The corporation began charging the fee again during the novel coronavirus crisis mainly to boost its revenues during the slowdown.
In a bid to protect Indian Railways’ catering and ticketing arm- Indian Railway Catering and Tourism Corporation (IRCTC) and after taking stock of “market sentiments”, the national transporter has decided to reverse its decision demanding 50% revenue share from convenience fee from ticket bookings on the official website of IRCTC, according to sources quoted in a PTI report.
On Thursday, IRCTC, in a regulatory filing, had said that with effect from November 1, it will share the revenue earned from convenience charges collected by it in the ratio of 50:50. IRCTC’s shares plunged 25% to Rs 685 a piece in Friday’s opening deals, a day after Indian Railways’ decision to ask for the revenue sharing arrangement.
A top source quoted in the report has said the Railway Board has decided to reverse its decision keeping in view the market sentiment as well as the fact that the revenues of IRCTC have suffered a lot during the Covid pandemic induced lockdown.
