The government is planning to reduce the LLF for industrial users of railway land to around 2-3 per cent of the value of the land, as against 6 per cent at present. (Representational image: Shutterstock)
The proposed decision will help in privatization of CONCOR
The Union Cabinet is likely to consider on Wednesday a proposal to cut the land license fee (LLF) and long lease period for railway land. With the approval of the much-awaited railway land policy amendment, the container corporation will be privatized India (CONCOR) More attractive.
According to sources, the proposal was sent three weeks ago, which is expected to be discussed in the next meeting. Another source said that the cabinet meeting is to be held via video conferencing on Wednesday, though he did not reveal the agenda.
The government is planning to reduce the LLF for industrial users of railway land by about two to three per cent of the value of the land from 6 per cent at present. Extension of the term of railway land lease is also a part of the proposal. Sources said one of the options is to increase the term of the land lease from 5 years to 35 years or more.
These proposed changes will pave the way for privatization of CONCOR as it will help strategic buyers to pay a very small amount as land rent. Indian Rail for the long term. This was one of the key suggestions from investment advisors at Concor.
In November 2019, the Union Cabinet had approved the transfer of management control as well as disinvestment of the government’s 30.8 per cent stake in the company.
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