The sit tight for another Land Licensing Fee was viewed as a vital barrier in the privatization of Container Corporation (CONCOR). The new strategy is required to cut down the land rent rates for utilization of railroad land for modern purposes.
The Union Cabinet is probably going to take up another land authorizing charge (LLF) strategy inside about fourteen days, a senior government official.
Not clearing the LLF was viewed as a critical barricade in the privatization of Container Corporation (CONCOR). As per a source mindful of the turn of events, the new arrangement will cut down the land rent rates for utilization of railroad land for modern purposes to under 3%.
To make a level battleground, the new authorizing strategy won’t simply be material to CONCOR yet in addition to private players. The public carrier had reexamined the LLF charge for CONCOR in April a year ago to a fixed expense of 6 percent connected to the market estimation of the land. This was set to increment at a pace of 7 percent for every annum, considering in expansion also in examination with a variable charge model contingent upon the volume.
The organization said in its yearly report that charging LLF at the pace of 6 percent will fundamentally affect its financials. “Mulling over the business practicality and to moderate the effect of expanded LLF on Railway land, the Company has given up its fifteen terminals based on Railway land,” the report said. In the wake of fixing the new LLF, the Ministry of Railways had slapped a land charge of Rs 1,276crore for 13 terminals, well above CONCOR assumption for Rs 460crore.
It was in November 2019 that the Cabinet Committee on Economic Affairs chose to sell the ministry’s 30.8 percent stake in CONCOR, alongside the exchange of the executives control to the purchaser. As per sources, the cycle has been required to be postponed in light of the land rent issue.