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.
