The cabinet approved the merger and transfer of all assets, liabilities, rights and obligations of Central Railside Warehouse Company (CRWC) with its holding enterprise Central Warehousing Corporation (CWC). This merger is expected to be completed within eight months of the date of decision.
Through this merger, similar functions of both the companies that is warehousing, handling, transportation etc will take place through a single administration. This is expected to promote efficiency, optimum capacity utilisation, transparency, accountability, ensure financial savings and leverage railway siding for new warehousing capacities.
With this merger, the 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.
In addition, the capacity utilisation 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.
As CWC is the sole shareholder of CRWC and all the assets and liabilities and rights and obligations will be transferred to CWC, there will be no financial loss to either instead it will bring synergy. A separate division with the name ‘RWC Division’ will be created by CWC for handling operations and marketing of RWCs.
