The proposed discount in LLF was sought by non-public gamers and the proposal would quickly be taken to the Cupboard for its approval, a senior authorities official instructed ET.
The railway ministry can be prone to lengthen the period of the lease interval to twenty years from present 5 years.
“Railways has agreed on lowering the land licensing price to three.5% for Concor put up divestment,” the official mentioned.
An settlement on the proposed adjustments was reached at a gathering final week attended by officers from the Division of Funding and Public Asset Administration (DIPAM), the railway ministry, Concor and NITI Aayog.
Concor, underneath the aegis of the railway ministry, is engaged in transportation and dealing with of containers.
The agency can be engaged within the operation of logistics services, together with dry ports, container freight stations and personal freight terminals. Presently, it has 61 container depots, out of which 26 are on railway land leased on a per container licence price foundation.
The Railway Board in its coverage dated March 19, 2020, notified an LLF regime for industrial use of its land and prolonged the identical to Concor. As per this coverage, the transporters should pay 6% of the land worth within the first yr of licence, which will increase by 7% yearly.
There was no readability on whether or not the identical price can be relevant as soon as the PSU is divested.
Officers in DIPAM mentioned that many potential patrons had identified on the licence price being too excessive and sought discount to three%. Nevertheless, the matter was caught because the railways was reluctant to slash the price.
The ministry is engaged on an in depth proposal and it will likely be despatched to the Cupboard for approval. The federal government can then problem an expression of curiosity for Concor.
In November 2019, the Cupboard had permitted strategic sale of 30.8% stake within the firm together with administration management out of presidency fairness of 54.80% within the firm. The federal government is planning to retain 24% stake put up divestment.
The Centre has budgeted ₹65,000 crore from divestment proceeds for the present monetary yr. It’s anticipating to lift ₹8,000 crore from Concor divestment as per present valuation.