Cabinet approves proposal to amend Warehousing Corp Act

NEW DELHI, June 23 (UNI) The Union Cabinet today approved a proposal to introduce a legislation to amend the Warehousing Corporations Act, 1962 to provide for induction of 3 functional Directors on the Board of the Central Warehousing Corporation (CWC).

The amendment will also help delete the provision of a nominee of the National Cooperative Development Corporation being appointed on the BoD of CWC, to permit salaried officials of the CWC to be appointed as Directors on the BoD of CWC, to delete the provisions relating to the position of vice-Chairman in the CWC and to permit warehousing corporations to borrow money from any Scheduled Bank also for the purpose of carrying out their functions under the Act.

The proposed amendment will enable the CWC to have three functional Directors and after the functional Directors are in position, the CWC will be able to exercise enhanced delegation/autonomy and also to enable Warehousing Corporations to access a wider base of sources of borrowed capital and also enable them to borrow funds on competitive and better nor.

The 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.