Again the big decision of the central government! This government company is going to be sold –

: Last year, the Central Government decided to privatize several government companies. In this situation, the government has yet again moved to privatize another company before the start of the new year. Originally, the government had planned last year that the process of privatization of the concerned companies would begin in January. According to the information received, it is known that the government has decided to privatize the Concor company. The bid process for this will start in the new year i.e. January itself.

Basically, the government will invite Expression of Interest (EoI) or initial bids for the privatization of Container Corporation of India (CONCOR) this month. In this context, an official gave this information on Wednesday. The official said the bid documents for Concor are almost ready and will have to get approval from the “alternative mechanism” or a group of key cabinet ministers.

Soon the memorandum will be released: Besides, the official told the media that, “We are trying our best to issue preliminary memorandum inviting EOI for Concor as soon as possible.” It may be noted that in November 2019, the Cabinet approved the strategic sale of 40.8 per cent stake in Concor out of the government’s 54.80 per cent stake.

Those who buy shares will also gain control of the company: In addition, management control will also be given to the company acquiring the shares. After this sale, the government will retain 24 percent stake with no veto power. Meanwhile, the sale plan remained in limbo as investors awaited clarity on Railways’ land lease policy and license fee.

This process will continue till the next financial year: Subsequently, the Union Cabinet approved a revised policy last September. which provides for lease of railway land for cargo-related activities for 35 years at 1.5 per cent per annum of the market value of the land. Meanwhile, Concor’s strategic sale will continue till the next financial year. Meanwhile, potential investors will submit their financial bids.

Investing in smaller companies will achieve investment objectives of: Regarding investment targets, officials said no more strategic stake sales are expected in the current fiscal year ending in March. In such a scenario, to achieve the investment target of Rs 65,000 crore, the government may insist on selling small stakes.

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