|
The Union Cabinet today approved a proposal to introduce a legislation to amend the Warehousing Corporations Act, 1962 to
(i) provide for induction of 3 functional Directors on the Board of Directors of the Central Warehousing Corporation (CWC).
(ii) delete the provision of a nominee of the National Cooperative Development Corporation being appointed on the Board of Directors of CWC,
(iii) permit salaried officials of the CWC to be appointed as Directors on the Board of Directors of CWC,
(iv) delete the provisions relating to the position of vice-Chairman in the CWC, and
(v) permit warehousing corporations to borrow moneys from any Scheduled bank also for the purpose of carrying out their functions under the Act.
The proposed amendment will:
(i) enable the CWC to have three Functional Directors;
(ii) after the Functional Directors are in position, the CWC will be able to exercise enhanced delegation/autonomy and
(iii) enable Warehousing Corporations to access a wider base of sources of borrowed capital and will also enable them to borrow funds on competitive and better terms.
The Central Warehousing Corporation (CWC) was set up in 1957 under the Agricultural Produce (Development and Warehousing) Corporation Act, 1956. The Act was, subsequently, replaced by the Warehousing Corporations Act, 1962 to provide for incorporation and regulation of warehousing corporations for the purpose of warehousing of agricultural produce and certain other commodities notified by the Central Government.
YSR/DS/HS/LV
|
