Central Warehousing Corporation May Face Privatisation Amid Repeal Of 1962 Act
Date
4/12/2024 2:34:37 PM
(MENAFN- KNN India) New Delhi, Apr 12 (KNN) The Central Warehousing Corporation (CWC), a government-owned Mini Ratna company, could be privatised or divested after the potential repeal of the Warehousing Corporations Act of 1962.
CWC was established under this 1962 Act, which may soon be repealed after receiving Cabinet approval in the coming months, according to sources.
The corporatisation of CWC on the lines of the former Indian airlines is being considered before any privatisation process.
Complicating matters is CWC's 50 per cent stake in 19 State Warehousing Corporations (SWCs) that were also created under the 1962 Act.
Currently, state governments cannot return CWC's equity in the SWCs due to the act's provisions.
"If CWC is privatised, any private company would likely want to protect its SWC investments," said a former official, highlighting potential future conflicts.
Presently, the Indian government owns 55 per cent of CWC, while the State Bank of India holds nearly 22 per cent, other banks 16 per cent, and public insurance firms 7 per cent.
CWC has been without a permanent managing director since November 2022.
In FY 2022-23, CWC reported a Rs 2,104 crore turnover operating 458 warehouses with 100 lakh tonnes of storage capacity at 87 per cent utilisation on average.
With India's warehousing market projected to grow 11.5 per cent annually to Rs 2.27 lakh crore by 2028, the future structure of key player CWC remains uncertain as the 1962 Act's potential repeal looms.
(KNN Bureau)
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