Cabinet approves the merger of Central Railside Warehouse Company with Central Warehousing Corporation | Daily Current Affairs 2021

Cabinet approves the merger of Central Railside Warehouse Company with Central Warehousing Corporation

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The Union Cabinet chaired by Prime Minister Narendra Modi recently approved the merger of Central Railside Warehouse Company Limited (CRWC) with Central Warehousing Corporation (CWC) in order to unify similar functions of both the companies.

The decision of this merger is another step towards implementing the direction of “Minimum Government Maximum Governance” given by Prime Minister Narendra Modi, promoting ease of doing business and bringing private sector efficiencies in public sector undertakings (PSUs).


Companies were merged with the aim of improving efficiency and increase financial savings.

Significance of the merger:

  • The merger will unify similar functions of both the companies (warehousing, handling, transportation) through a single administration to promote efficiency, optimum capacity utilization, transparency, accountability, ensure financial savings and leverage railway siding for new warehousing capacities.
  • It is estimated that management 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.
  • It will help in setting up at least 50 more Railside warehouses near goods-shed locations.
  • This in turn will generate employment opportunities for 36,500-man days for skilled workers and 9,12,500-man days for unskilled workers.
  • The capacity utilization of RWCs will also improve as there will be potential for CWC to store commodities other than commodities of cement, fertiliser, sugar, salt and soda being stored presently.

About Central Warehousing Corporation (CWC):

  • CWC is a Mini-Ratna Category-I CPSE.
  • It is a statutory body which was established under ‘The Warehousing Corporations Act, 1962.
  • It is a public warehouse operator established by the Government of India (GoI) in 1957 for the purpose of warehousing of agriculture produce and certain other commodities notified by the Central Government and for matters connected there with.
  • It is headquartered in New Delhi.

Central Railside Warehouse Company Limited (CRWC):

  • CRWC is a Mini-Ratna Category-II Central Public Sector Enterprises (CPSE).
  • It was incorporated on 10th July 2007 under the Companies Act, 1956.
  • CRWC was formed by CWC as a separate subsidiary company to plan, develop, promote, acquire and operate Railside Warehousing Complexes (RWCs) / Terminals / Multimodal Logistics Hubs on land leased from Railways or acquired otherwise.

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