IRCTC Ministry of Railways withdraw order asking IRCTC to share 50 percent convenience fee
New Delhi/UNI/IBNS: A day after rail reservation monopoly Indian Railway Catering and Tourism Corporation Ltd (IRCTC) shocked investors saying it has been asked by the Ministry of Railways to share half of the convenience fee from November 1; the order has been withdrawn.
"Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee," the Department of Investment and Public Asset Management (DIPAM) Secretary, Tuhin Kanta Pandey, tweeted.
IRCTC, owned 67 percent by the government, had on October 28 informed BSE in a regulatory filing that the Ministry of Railways had asked it to share the revenue earned from convenience fee in the ratio of 50:50 with effect from November 1.
The order sent by the Ministry of Railways led to a nosedive in the IRCTC stock value by 15 percent, as investors feared a 36 percent cut off from the state-owned company's revenue.
"ln compliance with the Regulation 30 of Securities and Exchange Board of India (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 1st November 2021," IRCTC had said in its filing.
Despite the announcement to withdraw the order, IRCTC stocks were still 6 percent lower at 1:30 pm and trading at Rs 860 apiece.
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