Food Min opposes privatisation of CWC

NEW DELHI: Food and Consumer Affairs Ministry is understood to have opposed privatisation of Central Warehousing Corporation (CWC), arguing that the move may compromise food security of the country besides requiring legislative permission.
In its presentation before the Disinvestment Commission, the ministry is reported to have argued that CWC was concerned with food storage and any move to disinvest equity might impact on food security, official sources said.
The ministry is also believed to have argued that the undertaking was set up under an act of Parliament - Central Warehousing Corporation Act 1962 - which meant legislative permissions were needed before proceeding with any dilution of equity.
Having been set up under a special enactment, CWC does not enjoy the status of a company under the Companies Act.
Therefore any move to sell equity would require a change in CWC''s status to a company.
Disinvestment Commission, which is firming up its recommendations, is learnt to have been looking into these issues.
Besides dealing with food warehousing, CWC is also into general and port warehousing.
Incidentally most of the state governments have also set up their own warehousing corporations in which CWC has a majority stake.