Government may not divest stake in IRCTC just yet: Report

The government’s plans to divest stake in Indian Railway Catering and Tourism Corporation (IRCTC) have been put on hold as it wants to tap the massive amount of data the portal possesses. Before selling shares in one of India’s biggest e-commerce sites, the Railway Ministry is looking for a better way to realise the value of the data, according to a report in The  Times of India.

The government will sell shares in Rail India Technical and Economic Services (RITES) and Indian Railway Construction Company Limited (IRCON) as was planned but share sale of IRCTC and Indian Railway Finance Corporation (IRFC) will be done later, Railway Minister Piyush Goyal informed.

At a news conference, Goyal said: “There is huge data with the company and that is not getting captured in the valuation. We are trying to see how we can utilise that.”

The government’s initial plan regarding all the railway PSUs was to sell 5-10 percent stake in each through an initial public offering. This was raised to 25 percent to conform with SEBI rules.

Government tapping into the data potential of a company is rare and is mostly seen in private companies looking to grow their business. A source told the paper: “We are seeing how the data can be used to offer services before, during and after the travel.”

According to sources, the government is studying a report by an independent agency which has suggested a plan to rework the services that IRCTC offers and make it more similar to travel portals like MakeMyTrip and TripAdvisor. If the plan works out, this would be the way forward for IRCTC.

“Based on a passenger’s booking history, he/she can get a message offering an Ola or Uber cab on reaching New Delhi railway station. We can also offer food options or a booking for National Museum or Rail Museum through the site,” an officer said.

The IRCTC website and app presently offer services like food, travel insurance, cab services and even air tickets.