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Target: ₹820
CMP: ₹731.40
The Union Cabinet lowered the railway land license fee to 1.5 per cent from 6 per cent. The 6 per cent per annum increment clause will also be applicable. The lease period has also been increased up to 35 years from the current five years. The decision has been taken after consultation with all the stakeholders.
This decision will help expedite the sale of the Centre's stake in Container Corporation of India by making the deal more lucrative. The development is believed to be in line with NITI Aayog's recommendation to keep the railway land leasing fee (LLF) for containers below 3 per cent.
This policy is applicable to new companies, while old ones have an option to switch to the new regime after a transparent and competitive bidding process. This will help create 300 Gati Shakti Cargo Terminals and 1.2 lakh jobs. The complete details of the bidding parameters will be made available soon.
During Q1 FY23, the company paid ₹95.59 crore as LLF charges — annualising the LLF charges, the total charges for the years are about ₹382.36 crore; if Concor switches to new policy, it will pay 1.5 per cent as LLF charges which would save ₹286.77 crore (pre-tax) in LLF charges that entails FY23 EPS rise to 15 per cent.
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