IRCTC accelerates efforts for digital data monetisation
19 August, 2022 | Pranay Lad
IRCTC, the Indian Railway Catering and Tourism Corporation, saw a 4.12% increase to Rs. 742.45 after announcing a tender to hire a consultant for digital data monetisation. On Thursday, August 18, ...
IRCTC, the Indian Railway Catering and Tourism Corporation, saw a 4.12% increase to Rs. 742.45 after announcing a tender to hire a consultant for digital data monetisation.
On Thursday, August 18, the media reported that IRCTC has released a tender to monetize its digital assets. The corporation estimates that by monetizing digital data, it may generate Rs 1,000 crore in income. IRCTC intends to use the data assets to enhance both the customer experience and income by commercialising the information of train travellers.
In response to the reports, IRCTC stock rose 6.16% on Thursday (18 August).
The business made it clear to the stock exchanges late on Thursday that the e-tender for the employment of a consultant for the Indian Railway’s/data IRCTC’s monetization was issued on July 29, 2022.
IRCTC said that as a for-profit organisation, it investigates potential new business ventures. “The sole purpose of this business tender, like all business tenders, is to hire a consultant. The consultant will advise IRCTC and Indian Railways on how to monetize their digital assets while adhering to different Acts and rules, such as the IT Act of 2000 and its revisions, the GDPR (General Data Protection Regulation), and the current Personal Data Protection Bill 2018 of India. Furthermore, it is a common procedure for a government-owned company to issue bids, “It was added.
The business added that it is still in the early stages of floating the offer and soliciting proposals from qualified prospective consultants. Concrete results won’t be known until after the right consultant has been chosen and has submitted a report on the value and processes/methodologies of monetisation, it was stated.
IRCTC is the only organisation that Indian Railways (IR) has authorised to offer catering services to railways, online train tickets, and packaged drinking water at railway stations and trains in India. IRCTC is a Mini Ratna public sector enterprise under the administrative control of the Ministry of Railways. The corporation was 67.4% owned by the Indian government.
IRCTC’s net profit more than doubled from Q1 FY22 to Q1 FY23, reaching Rs 245.52 crore. From Rs 243.37 crore in the first quarter of the previous year, net revenues soared to Rs 852.59 crore in the current quarter.
Also Read: In the first quarter of current fiscal year, IRCTC revenue increased by 250%