Concor privatisation to get a leg up: Railway land lease rentals cut sharply

In a move that will help accelerate urbanisation, multi-modal connectivity and infrastructure development, the Union Cabinet on Wednesday approved a steep 75% reduction in the railway land licencing fee (LLF), along with a much longer lease period, for specified end uses. The decision will also aid the proposed privatisation of Container Corporation of India (Concor).

If the land is used for cargo business – Concor is a major lessee – or integrated development of public service utilities like electricity, gas, water supply, sewage disposal, urban transport, etc, the LLF will now be 1.5% of the land value, down from 6%. Also, the lease period in such cases will be 35 years, instead of 5 years. The new policy has also eased the right of way (ROW) to make asset creation easier for investors.