The central government is trying to meet the disinvestment target at the earliest. The government may sell its stake to another government company in the current financial year. Can get approval this month.
Concor privatisation: The central government is trying to meet the disinvestment target at the earliest. The government may sell its stake to another government company in the current financial year. Actually, the Union Cabinet may soon reduce the land license fee of Indian Railways. According to a news in Business Today TV, the government may consider the proposal of the Finance Ministry to reduce it from 6 percent to 3 percent. According to sources, this move will help in facilitating the privatization of the state-run Container Corporation of India Limited (Concor).
Approval may be given by the end of this month
In 2021, the Ministry of Railways had notified a draft note on the land lease policy, which suggested a reduction of 2 per cent in the land license fee. According to sources, "The finance ministry had approved it last year. Now the cabinet approval is expected by the end of this month."
Explain that in April 2020, the Railways had notified the land license fee regime for industrial use of its land and extended it to CONCOR. Until then, CONCOR was paying land lease rentals to the transporter on a per-container (20-ft equivalent unit container) basis, with lower costs. License fee is an annual fee levied by the Indian Railways for the use of land owned by the national transporter.
Government approves disinvestment of 30.8% stake
In November 2019, the Union Cabinet had approved the transfer of management control as well as disinvestment of the government's 30.8 per cent stake in the company. Subsequently, the new land licensing fee policy in 2020 raised CONCOR's costs and created an unfavorable environment for investors to acquire.
