Amid Widespread Concerns Over Privacy, IRCTC Withdraws Tender To Monetise User Data

Amid Widespread Concerns Over Privacy, 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Government of lndia, the above referred e-tender for appointment of consultant for data monetization of IRCTC…has been withdrawn,” the company said in a regulatory filing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. 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Amid Widespread Concerns Over Privacy, IRCTC Withdraws Tender To Monetise User Data-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Amid Widespread Concerns Over Privacy, IRCTC Withdraws Tender To Monetise User Data-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Amid Widespread Concerns Over Privacy, IRCTC Withdraws Tender To Monetise User Data-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Amid Widespread Concerns Over Privacy, IRCTC Withdraws Tender To Monetise User Data-Inc42 Media
Amid Widespread Concerns Over Privacy, IRCTC Withdraws Tender To Monetise User Data-Inc42 Media
You’re in Good company