Land licence fee changes for Concor will remove major overhang

Demand recovery, progress on privatisation are the other triggers

Container freight operator Container Corporation of India’s (Concor’s) stock has risen 9 per cent over the past two weeks on expectations of reduction in land licence fee (LLF), progress on privatisation, and improving freight volumes. 

The government is expected to announce a revised land licence policy soon, which could lead to halving of LLF from 6 per cent to 3 per cent. Concor was thus far paying a fixed, volume-based fee for operating 25 terminals on land leased from the railways.  

LLF has been the biggest overhang for the stock as payment towards terminals was expected to increase from Rs 140 crore