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Railway ministry withdraws decision of 50% sharing of convenience fee on IRCTC

Railway ministry withdraws decision of 50% sharing of convenience fee on IRCTC

DIPAM Secretary said that Indian Railways will withdraw its decision of 50-50 sharing of convenience fee on IRCTC.

No 50% sharing of convenience fee on IRCTC No 50% sharing of convenience fee on IRCTC

The Ministry of Railways has withdrawn the decision of 50-50 sharing of convenience fee on IRCTC, according to the DIPAM Secretary. "Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee," stated the DIPAM Secretary in a tweet on Friday morning.
This decision comes after IRCTC stock took a beating after the contentious decision by the ministry that asked it to share 50 per cent of its revenue earned as convenience fee from website bookings.

“ln compliance with the Regulation 30 of Securities and Exchange Board of lndia (Listing Obligations and Disclosure Requirements) Regulations,2015, it is to be informed that Ministry of Railways vide above referred letter has conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50:50 w.e.f 1'st November 2021,” stated a filing by the IRCTC on Thursday.

Investors were concerned with the decision and criticism poured in from all corners. Twitterati did what it does best and flooded the platform with memes.

Shares of IRCTC Limited tumbled 28.8 per cent to hit an intraday low of Rs 650.1 on BSE on Friday morning. However, the stock recovered sharply after the Ministry of Railways withdre the decision of 50-50 sharing of convenience fee on IRCTC. At 11:18 am, the shares were trading 1.33 per cent lower at Rs 901.60 on BSE.
 
The state-owned IRCTC is the official firm to manage food services on trains. It also has a monopoly on ticketing and catering services. The decision that was swiftly rescinded had come after a two-month-long process.
 
Also read: 'IRCTC is new ITC of the meme world’: Here’s how the internet reacted to IRCTC stock split