The Union Cabinet may
consider a proposal to cut land licensing fees (LLF) and increase the
lease period for railway land on July 6, sources say.
The Cabinet’s approval
for the much-awaited amendment to the Railway Land Policy would ease the
strategic divestment process of Container Corporation of India (Concor).
The policy changes will make Concor more attractive to private
According to the
sources, the proposal was sent to the Cabinet for approval three weeks back and
would be discussed in the next meeting. Another source has confirmed that the
Cabinet meeting is scheduled to take place via video conferencing on July 6,
although he didn’t disclose the agenda.
The government is
planning to reduce the LLF for industrial users of railway land to about two to
three percent of the value of land as against six percent now. Extension of the
period for railway land lease is also a part of the proposal. One of the
options is to increase the land lease period from five years to 35 years or
more, the sources added.
The proposed changes will pave way for the privatisation of Concor, because it will help strategic buyers pay much lesser amounts as
land rentals to Indian Railways for a longer period. This was one of the key
suggestions put forward by the investment advisors of Concor.
The Union Cabinet in
November 2019 approved the disinvestment of the government’s 30.8 percent
shareholding in the company, along with the transfer of management control.