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Lok Sabha passed the Warehousing Corporations (Amendment) Bill, 2015

The Bill seeks to amend the Warehousing Corporations Act, 1962, which established central and state warehousing corporations for the purpose of warehousing agricultural produce and other commodities.

Mar 19, 2015 15:15 IST
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The Lok Sabha on 18 March 2015 passed the Warehousing Corporations (Amendment) Bill, 2015. The Bill seeks to do away with the Union Government’s responsibility as a financial guarantor to the Central Warehousing Corporation (CWC).

The Warehousing Corporations (Amendment) Bill, 2015 was introduced in the Lok Sabha by Ram Vilas Paswan, the Union Minister for Consumer Affairs, Food and Public Distribution on 3 March 2015.

The bill seeks to amend the Warehousing Corporations Act, 1962, which established central and state warehousing corporations for the purpose of warehousing agricultural produce and other commodities.

As per the Bill’s Statement of Objects and Reasons, the Union Government needs to do away with its role of financial guarantor to the CWC as it is a Mini-Ratna Public Sector Enterprise.
One of the criteria for awarding the Mini-Ratna status to a public sector enterprise is that there should be no financial support from the government.

However, as per the Warehousing Corporations Act, 1962, the Union Government guarantees the repayment of the principal and annual minimum dividend payments on shares to the CWC.

Further, the amendments to the Warehousing Act in no way dilute the 55 percent shareholdings of the government in the CWC.

 

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