Government To Invite EOI For Concor Privatisation This Month
The government will this month invite Expression of Interest or preliminary bids for privatising Container Corporation of India (Concor), an official said.
The government will this month invite Expression of Interest or preliminary bids for privatising Container Corporation of India (Concor), an official said on Wednesday.
The official said the bid document for Container Corporation of India is almost ready and has to get approval from 'Alternative Mechanism' which is essentially a group of key Cabinet ministers.
"We are trying hard to issue the Preliminary Information Memorandum inviting Expression of Interest (EoI) for Container Corporation of India as quickly as possible. It should be issued this month, subject to approval," the official told PTI.
The Cabinet, on Nov. 2019, had approved strategic sale of a 30.8% stake, along with management control, in Container Corporation of India out of the government equity of 54.80%. The government will retain 24% stake post sell-off but without any veto powers.
However, the stake sale was hanging fire as investors awaited clarity on the rail land lease policy and licensing fees. The Union Cabinet in September approved a revised policy which provides for long-term leasing of railway land for cargo related activities for a period of up to 35 years at 1.5% of market value of land per annum.
The completion of Container Corporation of India strategic sale would spill over to next financial year when financial bids would come in from potential investors.
A Navratna PSU under the railways ministry, Container Corporation of India is engaged in logistics and container transportation. It has 61 container terminals with a manpower of 1,359 as of Mar. 2022. To gauge investor interest, the government in October last year held roadshows for Container Corporation of India.
The company's total income in fiscal 2021-22 was Rs 7,857 crore, while profit before tax was Rs 1,407 crore.
Shares of Container Corporation of India settled at Rs 721 apiece, down 0.23% over the previous close on BSE on Wednesday.
So far in current fiscal year, the government has realised Rs 31,106.40 crore through disinvestment in CPSEs, against the full year budget target of Rs 65,000 crore.