The Indian government has decided to delay its plans for the privatisation of Container Corporation of India Ltd (CONCOR), a senior official disclosed on Monday. This marks a significant shift from previous intentions to divest a major stake in the company.
In November 2019, the Union Cabinet had approved the strategic sale of a 30.8 percent stake in CONCOR, along with management control. CONCOR, a Navratna Public Sector Undertaking (PSU) under the Railways Ministry, plays a crucial role in containerized freight transport across the country. At present, the government holds a 54.80 percent stake in the company.
The official cited concerns from the Railways Ministry and investor apprehensions as key reasons for the delay. “The government is unlikely to pursue CONCOR’s strategic sale at this moment,” the official noted.
Despite the Cabinet’s approval in 2019, progress towards the strategic sale has been slow. As of now, no Expression of Interest (EOI) has been issued, and no significant steps towards the sale have been taken.
With the government’s substantial holding of 54.80 percent in CONCOR, the feasibility of an Offer for Sale (OFS) is currently limited.
In related news, CONCOR recently signed a Memorandum of Understanding (MoU) with the Shipping Corporation of India (SCI), reflecting ongoing strategic partnerships and collaborations.
On the stock market, CONCOR shares closed at Rs 1,043.25 each, marking a modest increase of 0.35 percent over the previous day’s closing price on the Bombay Stock Exchange (BSE).
The decision to pause the privatisation efforts highlights the government’s cautious approach amid evolving economic and political dynamics.
