The Live Nagpur
  • Nagpur City
  • Nagpur Education
  • Nagpur Sports
  • Business
  • Featured
  • Crime
  • Entertainment & Lifestyle
  • Health & Wellness
  • Nation
  • Politics
  • Trending
  • Vidarbha
  • Obituary

The Live Nagpur

  • Home
  • City
  • Politics
  • Business
  • Education
  • Entertainment
  • Sports
  • Health
  • Crime
  • Forest
  • Featured
  • Vidarbha
Nation

Ministry of Railways withdraw the decision on IRCTC convenience fee

by TLN Team October 29, 2021
written by TLN Team October 29, 2021
Ministry of Railways withdraw the decision on IRCTC convenience fee

The Ministry of Railways on Friday announced to withdraw the decision on Indian Railway Catering and Tourism Corporation (IRCTC) convenience fee. This comes a day after IRCTC said that it has been asked to share 50% of its revenue earned as convenience fee from bookings on its website.

“Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee,” DIPAM Secretary announced in a tweet.

On Thursday, the Railways asked IRCTC to share 50 per cent of its revenue earned as a convenience fee from bookings on its website with the national transporter, an arrangement that had been discontinued since the pandemic.

In a regulatory filing, IRCTC informed SEBI that the Railways has said the revenue-sharing arrangement would be enforced from November 1.

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

IRCTC shares rebounded, though trading in the negative territory, as the stock was down 4% after the news. The stock had declined 25% in Friday’s early deals after the news of sharing half of its revenue from convenience fee with the government.

In 2014-15 when the revenue sharing ratio was 20-80, the Railway’s online ticketing and catering arm received a majority of the Rs 253 crore revenue. The following year, the revenue generated from this was Rs 552 crore with a 50-50 share arrangement. In 2016-17, with a similar revenue-sharing model, the fee generated Rs 362 crore as earning for the IRCTC-Railway combine.

But the convenience fee was discontinued thereafter, and the duo did not earn any revenue from it till 2019.

The IRCTC began charging the fee again during the coronavirus crisis mainly to boost its revenues. However, the Railways gave up its share.

In 2019-20, IRCTC earned Rs 352 crore from convenience fees and in 2020-21, it earned Rs 299 crore. Till August this year, the IRCTC had earned Rs 224 crore.

0 comment
FacebookTwitterLinkedin
TLN Team

previous post
Man with head injuries found dead in Kotwali
next post
‘Tu Yaheen Hai’ Shehnaaz Gill first insta post after Sidharth Shukla’s death

You may also like

900 IndiGo flights cancelled due to non availability...

July 3, 2022

Plastic ban: Check the list of alternative items

July 3, 2022

CBSE launches Pariksha Sangam portal ahead of X,...

July 3, 2022

Mastermind behind Amrawati murder arrested

July 2, 2022

After Udaipur, Amravati man likely killed for backing...

July 2, 2022

SpiceJet flight to Jabalpur returns to Delhi after...

July 2, 2022

Captain Amarinder Singh to be NDA’s candidate for...

July 2, 2022

Commercial LPG cylinder price drops by Rs 198

July 1, 2022

Eknath Shinde CM, Devendra Fadnavis Dy CM take...

June 30, 2022

Eknath Shinde to be new CM, to take...

June 30, 2022

Trending News

  • Rahul Narvekar is new Mah Assembly Speaker

    July 3, 2022
  • India logs 17,070 new COVID cases in last 24 hours

    July 1, 2022
  • Rise in COVID cases, India reports 18,819 positive in last 24 hours

    June 30, 2022
  • First batch of pilgrims leaves for Amarnath Yatra

    June 30, 2022
  • India bans single use plastic, to be in effects from July, check list of ban items

    June 28, 2022

Important Links

  • Politics
  • Crime
  • Business
  • Education
  • Entertainment
  • Sports

Available on Playstore & Coming Soon on Appstore

Search

October 2021
M T W T F S S
« Sep   Nov »
 123
45678910
11121314151617
18192021222324
25262728293031

Sign-Up Form

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Footer Logo
  • Nagpur City
  • Nagpur Education
  • Nagpur Sports
  • Business
  • Featured
  • Crime
  • Entertainment & Lifestyle
  • Health & Wellness
  • Nation
  • Politics
  • Trending
  • Vidarbha
  • Obituary
  • Privacy Policy
  • Disclaimer
  • Cookie Policy
  • Terms Of Use
  • Advertise with Us
  • Work with us
  • Contact Us

© 2020 - The Live Nagpur . All Rights Reserved.