Central Warehousing to store gold as well

The Central Warehosing Corporation (CWC) that is currently engaged in storing food and grain will have something more to offer. The government venture has decided to store gold in its facilities across the nation.

"We have decided to set up facilities at our godowns where gold can be deposited. We intend to have at least one to two warehouses in each state where gold can be stored. CWC will take the necessary steps to secure the precious metal with insurance and extra security measures. We are in a process of making arrangements where deposit receipt can be utilised as a negotiable instrument for the holder," said S K Tuteja, chairman, CWC that already handles silver.

Tuteja informed that the corporation has no plans for storing diamonds as of now due to lack of standards.

The corporation is banking on its network that is in the city area limits in most of the places.

"CWC has been in this area for about last fifty years when the corporation started commissioning its facility. Today, with expansion of cities and towns most of our warehouses are falling in the city areas, on prime locations in many cases. The facility will be available to all commodity exchanges including NMCE, NCDEX and MCX," Tuteja said.

CWC holds 26 per cent of the equity in National Multi Commodity Exchange (NMCE).

At any point of time, the corporation has stocks of foodgrains worth at Rs 6,000 crore. CWC, in association with NMCE will set up a new entity for storing and trading commodity receipts on the lines of stock depositories.