IRCTC Withdraws Tender To Monetise User Data

SUMMARY

IRCTC said that the decision was taken due to the withdrawal of the Personal Data Protection Bill by the union government

The decision to drop the tender was taken at the IRCTC’s annual general meeting on Friday ahead of a planned briefing before a parliamentary panel

IRCTC MD and chairperson Rajni Hasija, along with other officials, deposed before the parliamentary panel and informed about the withdrawal of the tender

Under fire over privacy and security concerns, Indian Railway Catering and Tourism Corporation (IRCTC) on Friday (August 26) withdrew the contentious tender that sought to monetise its user data.

“It is to further inform that due to withdrawal of Personal Data Protection Bill 2018 by the Government of lndia, the above referred e-tender for appointment of consultant for data monetization of IRCTC…has been withdrawn,” the company said in a regulatory filing.

The decision to drop the tender was taken at the IRCTC’s annual general meeting on Friday ahead of a planned briefing by IRCTC officials before the Parliament’s Standing Committee on Communications and Technology.

An IRCTC representative reportedly also informed the parliamentary committee that it was withdrawing the controversial tender to monetise user data.

According to the Economic Times, IRCTC MD and chairperson Rajni Hasija deposed before the panel along with other officials.

The development comes amidst widespread concerns over IRCTC’s move to monetise its data assets in the absence of data protection laws in the country. The ticketing arm of the Indian Railways floated the tender earlier this month to engage consultants to generate INR 1,000 Cr from the data available with it.

Consultancy majors EY and KPMG had expressed their willingness towards being engaged as consultants by the IRCTC.

According to the e-tender, the listed public sector undertaking (PSU) was looking to monetise trove of data available with it such as name, age, gender, address, email ID, class of journey, payment mode, among other details.

According to IRCTC, it has more than 10 Cr users, of which 7.5 Cr are active users.

Earlier this month, the government withdrew the Personal Data Protection Bill, 2021. The Bill was in making for years and would have addressed issues like data safety and protection and privacy of citizens.

However, the government also said that it plans to introduce a new Bill on the matter in the Winter Session of the Parliament.