Cabinet approves merger of CRWC with CWC

New Delhi : The Union Cabinet on Wednesday approved the merger of Central Railside Warehouse Company Limited (CRWC) with Central Warehousing Corporation (CWC).

‘Taking another step towards implementing the direction of ‘Minimum Government Maximum Governance’ given by Prime Minister Narendra Modi, promoting ease of doing business and bringing private sector efficiencies in Public Sector Undertakings, the Union Cabinet chaired by Prime Minister Narendra Modi has approved to merge and transfer all assets, liabilities, rights and obligations of ‘Central Railside Warehouse Company Limited’ (CRWC), a Mini-Ratna Category-II Central Public Sector Enterprises (CPSE) incorporated under the Companies Act, 1956 in 2007 with its holding enterprise ‘Central Warehousing Corporation’ (CWC),’ an official statement said.

The merger will unify similar functions of both the companies (i.e., warehousing, handling, transportation) through a single administration to promote efficiency, optimum capacity utilisation, transparency, accountability, ensure financial savings and leverage railway siding for new warehousing capacities.

It is estimated that management expenditure of Railside Warehouse Complexes (RWCs) will come
down by Rs 5 crore due to savings in the corporate office rent, salary of employees, and other
administrative costs.

The capacity utilisation of RWCs will also improve as there will be potential for CWC to store
commodities other than commodities of cement, fertiliser, sugar, salt and soda being stored presently.

The merger will facilitate setting up of at least 50 more Railside warehouses near the goods-shed locations. This is likely to generate employment opportunities equivalent to 36,500 mandays for skilled workers and 9,12,500 mandays for unskilled workers.

The merger is expected to be completed within 8 months of the date of decision, the statement said.

CWC is a Mini-Ratna Category-I CPSE set up in 1957 to provide for incorporation and regulation of
Warehousing Corporations for the purpose of warehousing of agriculture produce and certain other
commodities notified by the Central Government and for matters connected there with.

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