Congress flays Centre's disinvestment strategy for CONCOR

Raising concern over the matter, Congress spokesperson Gourav Vallabh asked the government, "Why a Navratna company that is of strategic importance, consistently generating a profit and declaring average dividends of Rs 365 crores per year in the last 4 years is decided for disinvestment? Once decided for disinvestment, why government is considering changing LLF from 6% to 2-3% and lease period from 5 years to 35 years?"

New Delhi: Congress party, on Monday, slammed the Central Government over its move of disinvestment in the Container Corporation of India Ltd (CONCOR), which is a Navratna Company and a Public Sector Undertaking (PSU) of Railways.

From its humble beginning, it is now an undisputed market leader, having the largest network of 60 Inland Container Depots (ICDs). In addition to providing inland transport by rail for containers, it has also expanded to cover management of ports, air cargo complexes, and establishing a cold-chain network.

While addressing a press conference, Congress spokesperson Gourav Vallabh said, "Modi government has given its nod to sell 30.8% out of its 54.8% holding in CONCOR and management control to strategic buyers. CONCOR has over 60 ICDs and 24 are situated on the railway land."

Quoting a Railway Board policy dated March 19, 2020, which notified a Land Licensing Fees (LLF) regime for industrial use of its land and extended the same to CONCOR, the Congress leader informed that the LLF being charged by the transporter now is 6% of the land value in the first year of license, the rate will increase at a rate of 7% annually to factor in inflation.

"Now, Centre is considering a change in the lease policy for industrial use of railway land. A change that will bring LLF to 2-3% from the current level of 6%. This policy may extend the land lease period from 5 years to 35 years or more. For this, CONCOR will require about Rs 3,500 crore for debts after utilizing Rs 2,500 crores of cash reserves," he asserted.

Raising concern over the matter, Gourav Vallabh asked the government, "Why a Navratna company that is of strategic importance, consistently generating a profit and declaring average dividends of Rs 365 crores per year in the last 4 years is decided for disinvestment? Once decided for disinvestment, why government is considering changing LLF from 6% to 2-3% and lease period from 5 years to 35 years?"

He also mentioned that the Adani Ports and Special Economic Zone Ltd (APSEZ) had said in its statement that "Acquiring CONCOR will be a breeze" and "it can easily acquire strategic target CONCOR".

He asked whether the proposal to reduce LLF was an indirect way to handover developed government land to private parties for the long term.

Congress also demanded that the valuable land belongs to farmers of our country and if the same is not used by railways then it should be returned to the original owners.