Railway Ministry Gives Not To IRCTC For Seven Years Tender Through Clustering Of Trains, Company's Shares Jump
The Railway Ministry has given a nod to the Indian Railway Catering And Tourism Corporation (IRCTC) to go for long-term tenders for a period of seven years through clustering of trains, the company announced in an exchange filing on Monday.
According to the circular, the ministry has made an addition to Para 1 and Para 3, or the Catering Policy, 2017, in order to allow IRCTC to have seven-year tenders, the company announced in an exchange filing on Monday. However, the tenders will be for seven years, with the stipulation that the performance in the first five years will be satisfactory.
As per the repercussion of the Centre's decision, there is a jump seen in the shares of IRCTC in the stock market. On Tuesday, the stock of IRCTC rose by as much as Rs 19.1, or 2.7 per cent, to Rs 720.3 apiece during the session on BSE, coming within Rs 38 of a 52-week high scaled in September.
The step has been taken in the direction to ensure the smooth implementation of the Yatri Seva Anubandh (YSA) policy, aimed at facilitating railway passengers with composite onboard services, as the circular claimed.
