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 Concor 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 Concor as quickly as possible. It should be issued this month, subject to approval,” the official told PTI.
The Cabinet, in November 2019, had approved strategic sale of a 30.8 per cent stake, along with management control, in Concor out of the government equity of 54.80 per cent. The government will retain 24 per cent 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 per cent of market value of land per annum.
The completion of Concor 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, Concor is engaged in logistics and container transportation. It has 61 container terminals with a manpower of 1,359 as of March 2022. To gauge investor interest, the government in October last year held roadshows for Concor.
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 Concor settled at Rs 721 apiece, down 0.23 per cent 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.
(This story has been published from a wire agency feed without any modifications to the text. Only the headline has been changed.