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. |