Government to invite EoI for Concor privatisation

The government will soon invite expressions of interest (EoI) or preliminary bids for the privatisation of Container Corporation of India (Concor). The Concor bid document is virtually complete and needs to receive permission from the ‘Alternative Mechanism’ which is effectively a group of important Cabinet ministers. “The Preliminary Information Memorandum inviting Expression of Interest for Concor will be released as soon as possible. If approved, it should be released this month, according to an official statement. Out of the 54.80% government stock, the Cabinet approved the strategic sale of a 30.8% share in Concor in November 2019 along with managerial control. After the sell-off, the government will still own a 24% share, but without any voting rights. The share sale, however, was on hold while investors sought information on the train site lease strategy and licensing costs. A revised policy that allows for the long-term lease of railway land for cargo-related activities for up to 35 years at a rate of 1.5% of the land's market value per year was authorised by the Union Cabinet in September. Once the strategic sale of Concor is complete, financial bids from prospective investors will start to come in for the following fiscal year. Concor, a Navratna PSU under the railways ministry, specialises in container transportation and logistics. As of March 2022, it had 61 container terminals and 1,359 employees. The government launched roadshows for Concor in October of last year to determine investor interest.