Hit by mounting losses, state-run Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railways are pushing for a partial rollback of the service charges waiver given on train tickets earlier to boost digital transactions after the government’s demonetisation move. According to sources, Indian Railways has already initiated talks with the finance ministry over this.
On November 23 last year, the government had waived the service charge, while a free insurance scheme was also implemented on December 9. An annual waiver of service charge will lead to a loss of about Rs 500 crore on the revenue of IRCTC, while the company is likely to suffer an additional outgo of Rs 36-40 crore, if free insurance scheme is extended annually. The ministry of railways has written several letters to the finance ministry to compensate for these losses. Read more