Bill in Lok Sabha to make Central Warehousing Corporation independent body

NEW DELHI: A bill seeking to make mini-ratna company Central Warehousing Corporation ( CWC) an independent body without government being a guarantor was introduced in the Lok Sabha today.

The amendment to the existing Warehousing Corporation Act, 1962 has been proposed by the Food and Consumer Affairs Ministry to absolve the central government's responsibility of being a guarantor of the CWC.

The Warehousing Corporation (Amendment) Bill, 2011, envisages removal of some sections referring to government's guarantee.

"....the government has so far given no other guarantee to the Corporation except for the payment of minimum guaranteed dividend as required under sub-section (1) of section 5 of the Act. The guarantee referred to in the said sub-section of section 5 would be withdrawn," as per the statement of objects and reasons of the bill.

Section 5 of the Act is proposed to be suitably revised with consequential changes in section 27, 30, 31 and 39, it said.

The CWC has consistently paid dividend to the government since its inception in 1957 and its net worth has been positive 2003 onwards. Also, the Corporation has not taken any loan from the central government and is also not dependent upon budgetary support, it said.

The CWC is operating 476 warehouses across the country with a storage capacity of 10.18 million tonnes providing warehousing services for a wide range of agricultural and industrial products.