Central Government Made Big Cut In Lease Fee Of Railway Land

Central government made a big cut in the lease fee of railway land, there was a sudden jump in the shares of Concor.

The Union Cabinet on Wednesday approved major changes in the Rail Land Lease Policy.

The government has reduced the Rail Land Lease Fee (LLF) from 6 percent to 1.5 percent by making a big cut. Apart from this, the lease period has been increased from 5 years to 35 years.

Giving information about this news quoting sources, the news agency said that it can be announced at the press conference today.

The land license fee will be charged at the rate of 1.5 percent per annum on the market price of that land. However, this deduction has not been made for every company.

Only cargo companies will benefit from this. Apart from this, if the railway land is already with any cargo company, then it can switch to this new policy.

Dynamic terminal.

In this meeting, it has been decided to develop the Gatishakti terminal as well. The government intends to build 300 Gatishakti terminals in the next 5 years.

According to the news, a formal announcement in this regard is also expected to be made this afternoon.

The central government made a big cut in the lease fee of railway land: Concor will benefit.

Government container company Concor will get a big benefit from this. In fact, till 2020, Concor, being a government company, was taking advantage of the lease at concessional rates.

However, after that, the government issued a decree, and now the same lease fee will be charged to government and private companies.

Due to this, Concor had to pay a fee of 6 percent and this was affecting its profits.

Increased financial burden.

According to the news of a leading media house,  the financial burden on Concor was Rs 140 crore in FY 20 which increased to Rs 590 crore in FY 21. CONCOR has 25 depots that are on lease on railway land.

Significantly, the government is also considering selling its stake in Concor. In this context also this change becomes very important.

At present, the government is a stakeholder of about 55 percent in this company.

There was a tremendous jump in Concor shares at 1 pm and this stock, which started trading near Rs 667, reached Rs 766.

However, at the time of writing the news, it is trading close to Rs 728 with a jump of 8.7 percent.