Rlys likely to withdraw Concor sops

The railway ministry is thinking of doing away with the concessions given to the Container Corporation of India (Concor) to ensure a level-playing field for new private players in the container transportation business.

The ministry is drafting a policy for the entry of private companies into container transportation by rail, where Concor has a monopoly as of now. Rites has been asked to conduct a study and the final report is expected shortly. Officials said the policy was expected to be ready by September.

Doubts have been raised on whether new players will be able to have a "fair" competition with Concor, which has built a huge asset-base over the years being the only operator.

The railways give various concessions like a 22 per cent rebate on freight for its flat wagons. The potential private players can manage to get a rebate only if they invest in wagons.

Even under this Wagon Investment Scheme, the magnitude of rebate is lower at 10 per cent for a fixed period of 10 years.