Railway Ministry withdraws decision on sharing IRCTC convenience fee; shares recover losses

The Ministry of Railways has decided to withdraw its decision on sharing of convenience fee earned by IRCTC on online bookings of train tickets, DIPAM Secretary said on Friday.

"Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee," DIPAM Secretary Tuhin Kanta Pandey tweeted.

The Indian Railways Catering and Transportation Corporation (IRCTC) on Thursday said that the Ministry of Railways has asked it to share 50 per cent of its revenue earned as convenience fee from bookings on its website with the national transporter.

Convenience fees charged from customers generated a sizable revenue for IRCTC. The fee is not part of the rail fare. It is for the service of online ticket booking offered by the IRCTC.

Shares of IRCTC on Friday tanked nearly 10 per cent in opening trade to Rs 822.40 a piece.

It recovered some ground after the government decided to withdraw its decision on IRCTC convenience fee and was trading at 887.35, down 2.89 per cent on the BSE.

IRCTC listed on the stock exchanges on October 14, 2019 at Rs 644 a piece after selling shares at Rs 320 apiece in an initial public offering.