A Bill to absolve the government of its responsibilities as a guarantor of the Central Warehousing Corporation (CWC) was introduced in the Lok Sabha today.
The Warehousing Corporation (Amendment) Bill, 2015, moved by Consumer Affairs Minister Ram Vilas Paswan states that the corporation was profit-earning body which has neither taken any loan from the government, nor was it dependent on its budgetary support.
According to the Statement of Objects and Reasons of the bill, the government has also not given any guarantee besides the payment of minimum guaranteed dividend as required under some provisions of the Act.
Therefore, as the CWC can manage its financial affairs on its own, the bill seeks to withdraw the guarantee of the government absolved it of its responsibility of being the guarantor.
The Central Warehousing Corporation is a public sector enterprise that has been awarded Mini Ratna status. Mini Ratnas do not get financial support or government guarantees as per the provisions.
