Big decision of the central government, Another government company is going to be sold! Will the process start this month?

The decision to privatize another company has been taken by the Central Government. The government had made planning about this last year itself that the process of privatization of this company would start in January. Let us tell you that the government has decided to privatize CONCOR. Bids will be called for this in the new year i.e. January itself.

EoI will invite
The government will invite expression of interest (EoI) or initial bids for privatization of Container Corporation of India (Concor) this month. An official has given this information on Wednesday. The official said the bid document for CONCOR is almost ready and approval has to be taken from the ‘alternative mechanism’ or a group of key ministers of the cabinet.

Memorandum will be released soon
The official has told the media that we are trying our best to issue the preliminary information memorandum inviting EOI for CONCOR as soon as possible. In November 2019, the cabinet had approved the strategic sale of 30.8 per cent stake in CONCOR out of the government’s 54.80 per cent stake.

Control will also go to the same company that will buy the stake
Along with this, management control will also be given to the company acquiring the stake. After this sale, the government will retain 24 per cent stake without any veto power. However, the sale plan remained in limbo as investors awaited clarity on the rail land lease policy and license fee.

The process will continue till the next financial year
Subsequently, the Union Cabinet approved a revised policy in September, which provides for leasing out railway land for cargo-related activities for 35 years at the rate of 1.5 per cent per annum of the market value of the land. The strategic sale of CONCOR will go on till the next financial year, when potential investors will submit their financial bids.

Disinvestment target will be achieved by selling small companies
Regarding the target of disinvestment, officials have said that no more strategic stake sale is expected in the current financial year, which is going to end in March. In such a situation, to achieve the disinvestment target of Rs 65,000 crore, the government may insist on selling a small stake.