(FE)
Even though the railways’ new land licensing fee (LLF) policy has set the ball rolling for privatisation of Container Corporation (Concor), the transaction will likely fructify only in the next financial year. This is because it is difficult to complete all the processes by March 2023.
The disinvestment, the process for which was to start early this year, was held up due to the delay in rolling out of the new LLF policy. The department of investment and public asset management (Dipam) will factor in the changes in the LLF policy that will be operationalised in three months and seek investor feedback, before floating expressions of interest (EoIs). These processes leading to transaction conclusion could take up to a year, a senior official told.
As per the new policy approved by the Cabinet Committee on Economic Affairs (CCEA) last week, LLF will be 1.5% of the land value for new land parcels for setting up cargo businesses, down 75% from now. Also, the lease period will be 35 years, instead of five years.
