Cabinet approves merger of CWC-CRWC
Union Cabinet has approved merger of Central Railside Warehouse Company (CRWC) and its holding enterprise Central Warehousing Corporation (CWC) in order to unify similar functions of both the companies. Companies were merged with the aim of improving efficiency and increase financial savings.
Significance of merger
- With the merger, it is expected that, management expenditure of Railside Warehouse Complexes (RWCs) will be reduced by Rs 5 crore due to savings in corporate office rent, salary of employees and other administrative costs.
- India & Saint Vincent and The Grenadines signed agreement for exchange of information & assistance to collect taxes which will help in India’s fight against offshore tax evasion and tax avoidance practices.
- CRWC & CWC merger will unify similar functions of both companies, like warehousing, handling, and transportation. These functions would come under single administration which in turn will promote efficiency, optimum capacity utilisation, accountability, transparency and ensure financial savings.
- It will help in setting up at least 50 more Railside warehouses near goods-shed locations which will generate employment opportunities for 36,500-man days for skilled workers and 9,12,500-man days for unskilled workers.
Central Railside Warehouse Company Limited (CRWC)
CRWC is a Public Sector Enterprise of Mini-Ratna status of Category-II. It was incorporated on in 2007 under the Companies Act, 1956.
Month: Current Affairs - June, 2021