Ajit Karn
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CONCOR Privatization:
The government will invite Expression of Interest (EoI) or initial bids for privatization of Container Corporation of India (CONCOR) this month. An official provided this information on Wednesday. Talking to the agency, the official related to the case said that the bid document for CONCOR is almost ready. For this, approval has to be taken from the alternative mechanism or a group of key ministers of the cabinet.
30.8% stake sale approved
The official said that we are trying our best to issue the preliminary information memorandum inviting EoI for CONCOR as soon as possible. In November 2019, the cabinet had approved the strategic sale of 30.8% stake in CONCOR out of the government’s 54.80% stake. Along with this, management control will also be given to the company acquiring the stake. After this sale, the government will retain 24% stake without any veto power.
Cabinet approves revised policy
The sale plan was in limbo as investors were awaiting clarity on the rail land lease policy and license fee. Subsequently, the Union Cabinet approved a revised policy in September, which provides for leasing out railway land for cargo-related activities for 35 years at the rate of 1.5% per annum of the market value of the land. The strategic sale of CONCOR will go on till the next financial year, when potential investors will submit their financial bids.
