The Union Cabinet has approved the merger of the Central Railside Warehouse Company (CRWC), a PSU with Mini-Ratna status, with its holding enterprise Central Warehousing Corporation (CWC), to unify similar functions of both companies with the aim to improve efficiency and increase financial savings.
“It is estimated that management expenditure of Railside Warehouse Complexes (RWCs) will come down by ₹5 crore due to savings in the corporate office rent, salary of employees, and other administrative costs,” said an official release issued after the meeting on Wednesday.
An agreement between India and Saint Vincent and The Grenadines, for exchange of information and assistance in collection of taxes that would help in the country’s fight against offshore tax evasion and tax avoidance practices, was also given the go-ahead.
The merger of CRWC with CWC will unify similar functions of both companies, such as warehousing, handling, and transportation, through a single administration that will promote efficiency, optimum capacity utilisation, transparency, accountability, ensure financial savings and leverage railway siding for new warehousing capacities, the release said.
It will facilitate setting up of at least 50 more railside warehouses near goods-shed locations. “This is likely to generate employment opportunities equivalent to 36,500 man days for skilled workers and 9,12,500 man days for unskilled workers. The merger is expected to be completed within eight months of the date of decision,” the release added.
On the agreement between the India and Saint Vincent and The Grenadines, the statement pointed out that it will help facilitate exchange of information between the two countries including sharing of information held by banks and other financial institutions. The exchange will also encompass information on legal and beneficial ownership, the release said. It will facilitate assistance in collection of the tax claims between the two countries.
“Thus, it will strengthen India’s commitment to fight offshore tax evasion and tax avoidance practices leading to generation of unaccounted black money,” it added.