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The government will invite Expression of Interest (EOI) or preliminary bids for privatising Container Corporation of India (Concor) this month, an official said on Wednesday.
Concor’s bid document is ready waiting to be approved by ‘Alternative Mechanism’ which is essentially a group of key Cabinet ministers, the official added.
“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.
In November 2019, the Cabinet 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. Post the sell off, the government will retain 24 per cent stake 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.
Over the next financial year Concor will complete its strategic sale 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 stood at INR 7,857 crore in fiscal year 2021-22, while profit before tax was Rs 1,407 crore.
Shares of Concor slipped down by 0.23% over the previous close on BSE on Wednesday and settled at Rs 721 apiece.
The government has realised Rs 31,106.40 crore through disinvestment in CPSEs in the current fiscal year against the full year budget target of Rs 65,000 crore.
