Lok Sabha passes Warehousing Corporations (Amendment) Bill, 2015

The Lok Sabha on 18 March 2015 passed the Warehousing Corporations (Amendment) Bill, 2015. The Bill seeks to amend the Warehousing Corporations Act, 1962.
Key facts

• Statement of Objects and Reasons of the bill states that the Central Warehousing Corporation (CWC) has been awarded a Mini-Ratna Public Sector Enterprise (PSE) status by the Department of Public Enterprises.
• The bill put to end the Central Government’s responsibility of being a financial guarantor to the CWC in order to follow the criteria to be a Mini-Ratna enterprise status.
• The one of criteria of status states that enterprise should not have financial support and it must be independent of any budgetary support or guarantee by the government.
• The proposed amendment in the bill omits certain sections relating to the government’s responsibility of being a guarantor to the CWC.

It should be noted that, the Central and state warehousing corporations are established under the Warehousing Corporations Act, 1962 for the purpose of warehousing agricultural produce and other commodities.

Month: Current Affairs - March, 2015