Seeking expeditious resolution of the conflict, the Committee has recommended that the ministry first undertake a review of all the remaining sites identified by IRCTC in a bid to ensure that no delay occurs in finalising sites for budget hotels.

Panel wants haulage charge withdrawn

The Parliamentary Committee on Public Enterprises has criticised the Railway Ministry for capping the gross profit of IRCTC at Rs 30 crore annually by levying a haulage charge on its pantry cars. During 2006-07, the ministry capped the IRCTC’s gross profit by directing that the corporation will have to bear the full marginal cost of haulage of pantry car and all surplus earnings over Rs 30 crore will have to be paid as haulage charges. The ministry justified its decision saying it had incurred losses worth Rs 494.46 crore on catering service in 2005-06 alone and a sizeable portion of these losses was on account of haulage charges of pantry cars. Stating that the haulage cost for pantry cars levied on IRCTC adds at least 10 per cent to the overhead cost, the Committee has said that the move would affect quality of food and services on mobile units “unless the tariffs are suitably raised”. The Committee has recommended the withdrawal of this haulage charge so that IRCTC “is not forced to transfer this cost to the passengers using the catering service”.