The disinvestment department DIPAM will issue Expression of Interest (EoI) for railway PSU CONCOR this month with the stumbling block of railway land issues being on way to be resolved, sources said. The government has decided to sell 30% of its stake in the company to a strategic partner, along with transfer of management control.
- The government currently holds 54.8% stake in Concor.
- The stake sale in this PSU will fetch the Centre Rs 5,500 crore.
- The state-owned Container Corporation of India (CONCOR) is looking to reduce its dependence on terminals built on land owned by the Indian Railways for handling cargo containers.
- CONCOR’s terminals built on Railways’ land have become issues in its privatisation, said sources.
- Railways’ land is an issue facing the strategic disinvestment of CONCOR.
- The deal cannot alter the basic rules laid down by the concession agreement signed between the private operators and the Indian Railways in 2007, which provides a level playing field to all.
- Sources added this is an issue that the railways brass are at work to settle to facilitate issuing the EoI of CONCOR this month.
- Currently, CONCOR gets land from the Indian Railways at a concessional rate.
- But since this is given to a new private operator, it may result in favour of the new entrant.
- Official sources stated, so the land lease terms have to be re-worked which is on the way.