The Union Cabinet on Wednesday approved the merger and transfer of 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).
According to the Union government, the move will promote the ease of doing business and bringing private sector efficiencies in Public Sector Undertakings.
As per an official release, the merger will unify similar functions of both the companies (i.e., warehousing, handling, transportation) through a single administration to promote efficiency, optimum capacity utilization, 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.
According to the release, the capacity utilization of RWCs will also improve as there will be potential for CWC to store commodities other than commodities of cement, fertilizer, 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 the decision," it stated.
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 therewith. It is a profit-making Public Sector Enterprise (PSE) with an authorized capital of Rs.100 crore and paid-up capital of Rs 68.02 crore.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor