Beginning 1 April 2020, the Railway Ministry decided to charge the annual LLF from CONCOR at the rate of 6 percent of the industrial land value per acre where the terminal is located, which will escalate by 7 percent annually.
Till FY20, the LLF for the land leased from Indian Railways for running terminals and ICDs was paid by CONCOR on a per container basis that rose annually in tandem with the percentage increase in net profit of the company. In FY20, the LLF was billed at the rate of Rs1,175 per TEU.
In FY23, CONCOR paid Rs392.36 crores to Indian Railways for running 26 terminals on land leased from the national transporter, 15.64 percent lower than the Rs465.11 crore incurred in the previous year as the rail hauler of boxes continue to follow the old regime without migrating to the new land licensing policy cleared by the Union Cabinet in September 2022.
Except for the Tughlakhabad terminal, the industrial land value of all the other facilities spread across different states have been worked out by the Railway Ministry and CONCOR based on the land revenue rates set by the respective state revenue authorities for a circle.
