[Financial News] To facilitate the privatisation of state-run Container Corporation (Concor), the government is planning to halve the lease rates payable by the company for industrial use of the railways’ surplus land to 3%. Also, the land lease period will be extended to 35 years from 5 years now, with a view to giving additional comfort to potential buyers.
The government is planning to sell 30.8% out of its 54.8% holding in Concor, a railway PSU, along with management control to a strategic buyer. The expression of interest for the stake sale will likely be issued soon after Cabinet clearance to the railways’ revised land licensing policy. However, the sale process, which was planned to be completed within FY21, could spill over to next financial year due to paucity of time.
Railways’ LLF policy was originally applicable to land let out for commercial purposes such as opening retail outlets such as shops, bookshops, kiosks, etc, but it was extended to container business (industrial use) this year. Post-2005, Concor has not picked up any land from railways as it bought land along rail tracks from farmers at cheaper rates.