: The NITI Aayog is re-examining its proposal for the Centre to strategically divest its stake in the Container Corporation of India Ltd. (CONCOR) after the Finance Ministry returned the plan on the ground that the move could potentially lead to a public sector monopoly becoming a private sector monopoly.
As part of the reappraisal, NITI Aayog is also taking on board the views of the Railways Ministry — CONCOR’s administrative ministry — according to a Finance Ministry source.
The logistics company, which operates a network of 64 terminals offering scheduled and on-demand rapid rail and road services between the hinterland and ports and between terminals, is the only listed company of the Indian Railways. It boasts a cash surplus of Rs.2,400 crore and has zero debt.
A final decision on whether the proposed strategic sale — one of a set of 22 such sales being planned — is to be dropped or amended will be taken keeping in mind the views expressed in inter-ministerial deliberations.
In discussions so far, the Railways Ministry has expressed its openness to a stake sale in the public sector unit, including to foreign bidders, the Finance Ministry official, who did not wish to be identified, said.
“The Railways Ministry has pointed out that the Competition Commission of India found no abuse of market dominance by CONCOR,” the official said. “It has been decided that a way of addressing the Finance Ministry’s concerns will be found…there is agreement that there should not be a private sector monopoly in the logistics sector,” he added.
There is agreement that there should not be a private sector monopoly in the logistics sector
