IRCTC listing still lingering despite clearance in 2017

Indian Railways yet do not have a comprehensive strategy to expedite the process of listing railway PSUs

vishwas

Vishwas Dass | June 14, 2018 | New Delhi


#Piyush Goyal   #Stock Exchanges   #IRCTC Listing   #Indian Railways   #PSU   #IRCTC  


Ministry of railways’ decision of holding the listing of Indian Railway Catering and Tourism Corporation (IRCTC) has exposed its seriousness in listing its public enterprises in stock exchanges.

Although the decision was taken one year back, the national transporter does not have a comprehensive strategy to facilitate the process.

The railways ministry has been delaying the listing of its PSUs for the past one year due to reasons undisclosed. It has not taken proactive measures to list its enterprises to garner funds from the market and introduce the needed transparency.

Post-demonetisation, the centre had permanently waived off the service charge levied by IRCTC on the e-ticket, which was its sole income medium. The IRCTC incurred losses of Rs 500 crore on account of this decision and so far a meager Rs 80-90 crore has been reimbursed by the finance ministry. The service charge was withdrawn on lieu of promoting digital payment.

As the centre did not compensate, the IRCTC kept on incurring losses resulting in poor evaluation of the enterprise. Sources said the railways have made little efforts to compensate losses incurred by IRCTC post-demonetisation.

The cabinet committee on economic affair, in 2017, had cleared the decks to list 11 public sector undertakings, including five railway PSUs namely IRCTC, RITES, IRFC, RVNL and IRCON.

Three days back, minister of railways Piyush Goyal affirmed that he himself had delayed the evaluation process of IRCTC because it was not getting the anticipated evaluation.  He said the huge database of IRCTC is not being captured in the valuation. “I am trying to see how we can capture and cross utilise these databases so that we can get better valuation which is comparable to other large customer-base companies,” the minister said.

Goyal also said that the listing of RITES, IRCON and RVNL is underway and would be concluded soon.

The IRCTC has got a huge customer data but it has not compiled it which has now become a problem in being getting evaluated.


 

Comments

 

Other News

Maharashtra to partner with Starlink for satellite-based internet

In a step toward inclusive digital transformation, the Maharashtra government has signed a Letter of Intent (LOI) with Starlink Satellite Communications Private Limited. With this, Maharashtra becomes the first Indian state to formally collaborate with Starlink to deploy satellite-based internet services f

Young Birders’ Month: A nationwide celebration inspiring budding nature explorers

This November, children and young people across India are embarking on a joyful exploration of birds and nature as part of Young Birders’ Month (YBM) - a first-of-its-kind, month-long campaign created to spark curiosity and ecological awareness among young minds. This initiative is organized collabor

How Bangladesh’s bonhomie with ISI, China poses threat to India

Although New Delhi has not officially commented on the growing footprint of Pakistan’s Inter-services Intelligence (ISI) in Bangladesh, India`s strategic and security community appears to be highly concerned over last week’s development in Dhaka.  During Pakistan’s Joi

CSR in India: Stop counting rupees, start measuring impact

When India became the first country in the world to legislate corporate social responsibility (CSR) in 2013, it marked a bold experiment in blending profit with purpose. By law, companies with a net worth of ₹500 crore or more, or a turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more

A perfect match of Eastern philosophy and modern self-help

Shaolin Spirit: The Way to Self-Mastery By Shi Heng Yi Particular Book/Penguin Books, 264 pages In the history

When healthcare becomes luxury: Inside India’s growing medical inequality

India’s ambition to achieve Universal Health Coverage (UHC) by 2030 is faltering under the weight of low public spending, rising privatisation, and deepening inequality in access to care. Leading doctors and public health experts warn that the current system, heavily dependent on out-of-pocket spendi

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter