IRCTC share price rises 2% after concession agreement with Karnataka tourism

IRCTC

The Indian Railway Catering and Tourism Corporation share price gained 1.6 percent intraday on November 20, a day after it signed a concession agreement with the Karnataka State Tourism Development Corporation (KSTDC).

The stock, which listed on October 14, has rallied 182 percent in a span of just one month. It was quoting at Rs 914, up Rs 11.75, or 1.30 percent, on the BSE at 1054 hours.

The IRCTC will refurbish KSTDC’s Golden Chariot train and restart its operations from March 2020. The 18-coach luxury train has 44 guest rooms that can accommodate 84 guests. It covers tourist attractions in Karnataka and Goa.

The train was discontinued in March 2018 due to low occupancy.

Addressing the gathering, Karnataka Tourism Minister CT Ravi said, “Ensure that no train makes losses. Don’t keep high fares, have competitive rates. Sit together and resolve any differences (that may) arise between IRCTC and KSTDC.”

The Karnataka government and the KSTDC had operated and maintained the Golden Chariot since its inception in 2008 and it was the only luxury train in south India, he said.

Railway Board Chairman Vinod Kumar Yadav expressed confidence that the IRCTC and the KSTDC would successfully operate and market the Golden Chariot.

The IRCTC will in a week’s time announce the new schedule and tariff for the Golden Chariot. Initially, two trips would be offered every month, KSTDC Managing Director Kumar Pushkar told PTI on the sidelines of the signing event.

Earlier, the tariff was $600 (around Rs 43,000) per day.

Pushkar said the agreement with the IRCTC, which is for a period of 10 years, was on a revenue-sharing basis. The KSTDC would do the major work on the train, while the interiors, operation and marketing would be done by the IRCTC.

“The haulage charges used to be 92 percent of the total revenue. We were paying more than the net revenue to the railways as haulage charges… Had the occupancy rate reached 50 percent, we would have broken even,” he said.

Things should improve hereafter as the haulage charges had been halved, he said.

News Source:moneycontrol

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