What happened that within 19 hours the Railway Ministry had to withdraw one of its decisions!
IRCTC Convenience Fee : What happened that the Indian Railways was forced to withdraw one of its decisions within 19 hours. And the surprising thing is that the announcement of the decision which was withdrawn by the Ministry of Railways did not come from the Ministry of Railways but from the Department of Investment and Public Asset Management (DIPAM) of the Ministry of Finance. Tuhin Pandey, Secretary, DIPAM, has given information about the withdrawal of the decision by the Ministry of Railways by tweeting.
Now let me tell you the whole story. In fact, last evening, the Ministry of Railways had ordered from one of its undertakings, Indian Railway Catering and Tourism Corp (IRCTC) to share the convenience fee with the Ministry of Railways. IRCTC, while sharing this information with the stock exchanges, said that the Ministry of Railways has conveyed the decision to share the revenue earned from the convenience fee collected by IRCTC with the Ministry in the ratio of 50:50 with effect from November 1, 2021. Is.
Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee pic.twitter.com/HXIRLxXTlL
— Secretary, DIPAM (@SecyDIPAM) October 29, 2021
IRCTC shares fell by Rs 274
After this announcement of IRCTC, as soon as the stock market opened on Friday morning, a huge sell-off started on IRCTC’s stock, due to which IRCTC’s stock fell by 20 percent after lower circuit. The share of IRCTC reached Rs 639.45, down by Rs 274 from yesterday’s closing rate of Rs 913.50. Investors suffered heavy losses. The Finance Ministry was also shocked by this decision of the Ministry of Railways. The convenience fee charged from the customers generates a huge revenue for IRCTC. The fee is not part of the rail fare. It is charged for the online ticket booking service offered by IRCTC.
IRCTC managed after the intervention of DIPAM Secretary
Keeping in mind the interests of the investors of IRCTC, DIPAM Secretary Tuhin Pandey tweeted and informed about the withdrawal of the decision of the Ministry of Railways to share the convenience fee. The unhappiness of the Finance Ministry is the main reason behind the withdrawal of this decision of the Ministry of Railways. Also the secretary of DIPAM has said that Our clear advice has always been that any policy decision in respect of listed PSUs should be taken keeping in mind the interest of the minority shareholders. However, after the tweet of the Secretary of DIPAM, the share of IRCTC saw a recovery from the lower level and now it is trading at 866 with a fall of only 5.27 percent.
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