The government has agreed to withdraw its order asking the online ticketing arm The Indian Railway Catering and Tourism Corporation (IRCTC) of the Railways to share 50 per cent of the convenience fee.
The decision was taken at a meeting between the top management of IRCTC and the Railway Board on Friday morning.
IRCTC shares crashed more than 27 per cent on the NSE to hit intra day low of Rs 639. However, a sign of recovery was seen after the decision to withdraw the order was announced.
Share prices of Indian Railway Catering and Tourism Corporation (IRCTC) today fell over 20 per cent at stock market.
In a regulatory filing on Thursday, IRCTC had informed SEBI that the Railways has said the revenue-sharing arrangement would be enforced from November 1. The arrangement was discontinued during the pandemic, the PTI report says.
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.