Government has approved the merger of Central Railside Warehouse Company (CRWC) with Central Warehousing Corporation (CWC), a move which will unify similar functions of both the companies through a single administration and promote greater efficiency financial savings.
The merger is expected to be completed within eight months from the date of decision, which was taken in the meeting of the Union Cabinet held on Wednesday.
Official sources said that since both the organisations provide warehousing and handle transportation, the management expenditure of rail side warehouse complexes will come down by Rs five crore in terms of salaries, office rent and other administrative costs.
After the merger, the capacity utilisation of rail side warehouse complexes will also improve as there will be potential for CWC to store commodities other than cement, fertiliser, sugar, salt and soda which are being stored presently.
Also the decision will facilitate setting up of at least 50 more rail side warehouses near the goods-shed locations. This is likely to generate employment opportunities equivalent to 36,500 man days for skilled workers and 9,12,500 man days for unskilled workers.
CWC is a mini-ratna public sector undertaking which was 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 Centre. It is a profit making entity with authorised capital of Rs100 crore and paid up capital of Rs 68.02 crore.