The strategic sale of Container Corporation of India (Concor) is not happening in the current fiscal as the railway land usage policy is yet to be finalised, a senior official said.
Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said it takes about a year from the date of issue of Expression of Interest (EoI) for the conclusion of any strategic sale.
For Concor, the post privatisation rail land usage policy is yet to be finalised by the Ministry of Railways and hence the EoI could not be issued.
Container Corp is not happening this year. From expression of interest to conclusion, it takes about nine months to one year. We were hoping that the expression of interest will be issued but that is linked to the land policy. As soon as we resolve that, we will move forward, Pandey told PTI.
The Container Corporation of India Ltd (Concor) has built terminals to house containers on land leased from the Indian Railways on a per container licence fee basis. On the other hand, terminals run by existing private container train operators are built on land purchased from the market.
Also, Concor currently gets land from the Indian Railways at a concessional rate as compared to other inter-modal operators, an arrangement that may have to be altered once the firm is privatised.
The Cabinet, in November 2019, had approved strategic sale of 30.8 per cent stake, along with management control, in Concor out of the government equity of 54.80 per cent. The government will retain 24 per cent stake post sell-off but without any veto powers.
With regard to other CPSEs (Central Public Sector Enterprises) which are in the pipeline for privatisation, Pandey said he hopes to conclude sale of Central Electronics Ltd, BEML, Shipping Corp of India, Neelachal Ispat Nigam Ltd , Pawan Hans and BPCL in the current fiscal ending March 2022.
Barring Central Electronics, where the government has reached the financial bids stage, due diligence is going in the remaining five CPSEs and share purchase agreement being finalised, Pandey said.
"Central Electronics we have already reached the financial bidding stage. We are in the due diligence phase in others. As soon as due diligence is completed we will issue the request for proposal for financial bids, he said.
The government has set a disinvestment target of Rs 1.75 lakh crore for the current fiscal. So far, it has raised about Rs 9,110 crore by selling a stake in Axis Bank, NMDC Ltd, Housing and Urban Development Corp (HUDCO), and Hindustan Copper.
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