The government has decided to sell a 30.8 percent stake in Concor.
The Union Cabinet can approve the New Land Licensing Fee, LLF policy within two weeks. The aim is to reduce the leasing rates by 3 percent for the use of railway land for industrial purposes.
- February 22, 2021, 9:28 PM IST
According to Moneycontrol reports, not approving LLF was considered a significant hindrance in the privatization of Container Corporation (Concor). Since the government has decided to sell 30.8 percent stake in CONCOR. Therefore, the government wants to strengthen CONCAR. Therefore, it has been decided to bring a new policy. The new licensing policy will apply not only to Concor, but also to private players.
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Earlier there was a 6 percent rate
In April last year, the LLF charge was revised for CONCOR for a fixed fee of 6 percent related to the market value of the land. It was set to increase at the rate of 7 percent per year. According to a government report, charging LLF at the rate of six percent is having a significant financial impact on Concor. Therefore it is important to reduce it.
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Concor is getting more exercise from railway land
The report said that keeping in mind the business viability and reducing the impact of increased LLF on railway land, the company has decided to sell 15 of its terminals on railway land. After fixing the new LLF, the Ministry of Railways levied a fee of Rs 1,276 crore for 13 terminals, which was more than CONCOR’s expectation of Rs 460 crore.