The Union Cabinet may perhaps look at a proposal to minimize land licensing rate (LLF) and lengthier lease time period for railway land on Wednesday, according to resources. The approval of the substantially-awaited Railway Land Plan amendment will make privatisation of Container Corporation of India (CONCOR) additional interesting.
According to the sources, the proposal experienced been despatched three weeks back again, hoping to be mentioned in the upcoming assembly. A further supply claimed the Cabinet assembly scheduled by means of video conferencing for Wednesday, although he did not disclose the agenda.
The government is arranging to cut down the LLF for industrial users of railway land to about two to three % of the worth of land as against 6 per cent now. Extension of the time period for railway land lease is also a component of the proposal. One particular of the options is to improve the land lease time period from 5 several years to 35 several years or more, the supply included.
These proposed adjustments will pave way for the privatisation of CONCOR mainly because it will support strategic potential buyers pay out much lesser amounts as land rentals to Indian Railways for a extended time period. This was one of the vital suggestions by the investment decision advisors of CONCOR.
The Union Cupboard in November 2019 experienced authorised the disinvestment of the government’s 30.8 for every cent shareholding in the firm, along with transfer of management regulate.