New Delhi: The government will invite Expression of Interest (EoI) or preliminary bids this month for privatising Container Corporation of India (Concor), said an official on Wednesday. The official also said that 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," said the official.
The Cabinet, in November 2019, had approved strategic sale of 30.8 percent stake, along with management control, in Concor out of the government equity of 54.80 percent. The government will retain 24 percent 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 percent 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's 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 percent 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.