IRCTC shifts tracks to boost revenues
Almost two years after its on-board train catering services was discontinued, Indian Railway Catering and Tourism Corporation (IRCTC) is devising a new model to stay afloat, with less reliance on Railways. For its revival, the mini ratna PSU under the railway ministry is banking on its newly-started facility management division through which it provides a one-window solution for catering, front office, housekeeping, security, laundry, and horticulture services to private companies, government organisations and educational institutes. The corporate also has plans of setting up budget hotels near railway stations in state capitals and is in talks with several states for the allotment of land.
After the new railways catering policy was implemented in 2010, IRCTC lost the on-board catering services in around 250 trains and was left with a handful of trains, including a few Durontos and Rajdhanis. Its revenue from on-board train category came down from a staggering R321 crore (roughly 50%) in 2010-11 to R33 crore in 2011-12.
IRCTC hopes that the newly-started facility management division has a potential to contribute around 30% to its total revenue in coming years.
“We are expecting our newly-started facility management services to make up for the loss in revenue caused in on-board catering services. We are already providing facility management at a few educational institutes, IT parks and government organisations and are also in talks with various government departments, PSUs and IT majors,” said a senior
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