The Indian government plans to invite preliminary bids for the privatisation of the Container Corporation of India (Concor) this month, according to an official statement. The bid document for Concor is said to be ready and just needs the approval from the “Alternative Mechanism” which is a group of key Cabinet ministers. The official said that the government is trying to issue the preliminary information memorandum (EoI) for Concor as soon as possible, and it should be issued this month, subject to the above-mentioned approval.
The government of India approved the strategic sale of a 30.8% stake in Concor, along with management control, in November 2019. The move is part of a plan to reduce the government’s equity in the company from 54.8% to 24%. However, the privatisation of Concor was put on hold as investors awaited clarification on the rail land lease policy and licensing fees. But, the union cabinet approved a revised policy in September 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 the market value of land per annum.
It should be noted that the completion of the strategic sale of Concor would be carried over to the next financial year, and the financial bids from potential investors would come in at that time.
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