Govt to invite EoIs for strategic divestment of Container Corporation by month end

The authorities is more likely to search expression of curiosity for strategic divestment of Container Corporation of India by finish of the month, because it pushes ahead with its disinvestment drive within the ongoing monetary 12 months.

Potential bidders shall be invited for buying about 30% stake within the public sector enterprise after the railways ministry brings out coverage for land leasing, which has been the important thing challenge holding again the initiation of divestment course of.

“EoIs should come by the month end… Once the land leasing policy is brought out by railways, we will go ahead,” an official stated, asking to not be named.

The official added that the railways ministry was near finalising the coverage which can cut back the lease charges by a half and prolong the leasing interval to long-term foundation as a substitute of brief time period.

“The leasing rate is being planned to be brought down to 3% and the leasing period will have to be made 30-35 years to make it attractive (for potential buyers),” the official added.

The leasing coverage would require approval from the Cabinet which, if delayed, may effectively push the disinvestment course of into the subsequent monetary 12 months.

Typically, the Department of Investment and Public Asset Management (DIPAM), which is the nodal physique enterprise divestment of public sector enterprises, offers a few month’s time or extra for bidders to place of their bids. In sure circumstances resembling Air India and Bharat Petroleum Corp Ltd, the federal government had given extensions because of the Covid-19 pandemic.

In case of Concor, the Cabinet Committee on Economic Affairs had given in-principle approval for strategic divestment in November final 12 months. Shares of Concor closed at Rs 415.three on the Bombay Stock Exchange on Tuesday, up 0.56%.

The authorities has set a goal of Rs 2.1 lakh crore by disinvestment for the monetary 12 months ending March 2021. The present proceeds stand at Rs 27,577 crore, of which Rs 13,844 crore has come from disinvestment, Rs 13,733 crore from dividend receipts.