Cabinet approves merger of CRWC with holding company Central Warehousing Corporation
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the merger of Central Railside Warehouse Company Ltd.
The merger will merge similar functions of both the companies, like warehousing, handling and transportation, through a single administration to promote efficiency, optimum capacity utilisation, transparency, accountability, secure financial savings and leverage railway siding for new warehousing capacities.
To merge and transfer all assets, liabilities, rights is another step towards the Prime Minister’s call. Promoting ease of doing business and bringing private sector efficiencies in PSUs, the government said in a release.
The merger will facilitate setting up of at least 50 more railside warehouses near goods-shed locations. Likely to generate employment opportunities equivalent to 36,500 man days for skilled workers and 9,12,500 man days for unskilled workers. The merger is expected to be completed within 8 months.
CWC, a profit making PSU, had formed separate subsidiary company CRWC on July 10, 2007. To plan, develop, promote, acquire and operate RWCs, terminals and multimodal logistics hubs on land leased.
CRWC has 50 employees and a staff of 48 outsourced personnel. Currently, it is operating 20 railside warehouses across the country. As on March 31, 2020, its net worth stood at Rs 137.94 crore.
“CRWC developed specialisation, expertise and goodwill in development and operation of RWCs. Its pace of growth was not as expected. Because shortage of capital and some of the restrictive clauses in its MoU with Ministry of Railways,,” the government said.