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Central Warehousing Corporation
By A Special Correspondent

The Central Warehousing Corporation (CWC) was established under the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, which was later repealed and replaced by the Warehousing Corporations Act, 1962. The authorized and paid up capital of the Corporation are Rs. 100 crore and Rs. 68.02 crore respectively.  The shareholders of the Corporation are the Government of India, the State Bank of India, 35 other scheduled banks, 7 insurance companies, 6 recognized associations/companies dealing in agricultural produce and 400 cooperative societies.  

To emerge as a leading global market facilitator by providing integrated warehousing infrastructure and other logistic services; as a support to India’s economy with emphasis on customers’  delight.

To provide total quality service on a global scale in the field of warehousing, logistic services and related activities with value addition to the customers’ satisfaction

Functions of CWC:

The main functions of CWC are as follows:
To acquire, build and run warehouses in India and abroad for storage of agricultural inputs and produce and other notified commodities.
To provide facilities for Handling & Transportation of stocks to and from warehouses.
To create infrastructure and provide facilities for EXIM trade, like Bonded Warehouses, CFS/ICDs, Air Cargo Complexes, etc.
To act as agent of Government/Companies/Body Corporates for the purpose of purchase, sale, storage, distribution of stocks,
To provide Disinfestation and Pest Control Services outside its warehouses.
To provide Consultancy Services.

Physical Performance

As on 1st July 2010, CWC was operating 483 warehouses with a total storage capacity of 105.21 lakh MT with an average utilization of 92%.
CWC is the leading player in the Warehousing/Logistics business and providing warehousing/logistics facilities to its diversified clientele  including farmers, traders,  Government Departments, Semi-Government Agencies, Autonomous Bodies, Cooperative Institutions, importers/exporters, etc.  The Corporation has been providing scientific storage facilities for foodgrains, agricultural inputs and produce and other notified commodities. In order to cross–subsidize the agricultural sector and to sustain its operation, CWC has been diversifying into different areas. It made an entry into operation of Public Bonded Warehouses in the late seventies, when the CBEC, acknowledging the expertise of CWC in the field of storage and warehousing, identified it as a custodian for  imported dutiable goods.  CWC is now operating 75 Custom Bonded Warehouses with a capacity of 5.11 Lakh MT.  The CWC also runs 4 Air Cargo Complexes (8421 MT), 36 Container Freight Stations/Inland Clearance Depots (15.68 lakh MT) and 3 Temperature Controlled Warehouses (2200 MT) providing services to the export/import trade.

(Storage capacity in lakh tonnes)

Financial Performance
CWC is a consistently profit making PSU not dependent upon any budgetary support from the Government. All its operations as well construction/expansion activities are met out of its own internal generation of resources. The financial results of the Corporation for the past five years are as under:

(Rs. in crore)

Year Turnover          
Expenditure Profit Before Tax (PBT) Profit After Tax (PAT)
2005-06 619.50 512.55 106.95 70.62
2006-07 686.44 552.64 133.80 88.70
2007-08 776.23 621.47 154.76 136.91
2008-09 849.25 738.81 110.44 110.46
2009-10 987.95 824.07 163.88 130.52
(Turnover in crore rupees)

State Warehousing Corporations

CWC has 17 Subsidiaries i.e. State Warehousing Corporations (SWCs).  As on 01.07.2010, these SWCs operated 1599 Warehouses, with 223.50 lakh MT capacity  with overall  capacity utilization level  of  82%.  The CWC has so far invested Rs.60.37 crore as share capital in the SWCs. 

Farmers Extension Service Scheme (FESS)
In order to encourage the farming community and motivate them to avail public warehousing facilities, the CWC offers a rebate of 30% in its storage charges for the farmers’ stocks.  A Warehouse Receipt, which is a negotiable instrument, is issued to the farmers, who can obtain cheap institutional credit on pledge of the Warehouse Receipt.  In order to educate the farming community on storage and preservation of    stocks at farm level and reduce the avoidable storage losses, the CWC operates its Farmers Extension Service Scheme (FESS) wherein the technical staff posted at its warehouses visit the adjoining villages and train the farmers on Post Harvest Technology. The scheme is presently in operation through 275 rural based warehouses.

Pest Control Services (PCS)

CWC has been providing Disinfestation and Pest Control Services at the doorstep of its customers and focusing on this as a distinct activity for income generation. 
These activities include:
Pre-shipment fumigation of export cargo
On-board (ship) fumigation
Container fumigation
Rail Coach disinfestation
Aircraft disinfestation
Pre & Post Construction anti-termite treatment
Disinfestation of industrial canteens
Disinfestation of hospitals, hotels and other premises
General pest control and deratting operations in housing colonies, etc

During 2009-10, CWC earned a revenue of Rs.14.83 crore as against Rs.12.56 crore earned during 2008-09,  posting a growth of about 20%.

(Income in lakh Rs)

Container Train Operations
With a category-I licence from the Indian Railways for running container trains on pan India basis, CWC is presently operating Container trains between   Loni (Delhi) and J.N. Port (Navi Mumbai). It is also operating Container Rail Terminals at Loni and Kalamboli (Navi Mumbai )on PPP model. These terminals are also being used by other train operators as common user facility.
Integrated Check Post Terminal
CWC is operating an integrated  truck terminal with  spread over an area of 17.08 acre,  at Petrapole  (West  Bengal) on  the Indo-Bangladesh border with facility for truck parking, weighment, storage, customs examination, etc. for providing support services to the import/export trade with Bangladesh through land route. During 2009-10, this facility handled 1.62 lakh import/export trucks, recorded 89% capacity utilization and earned a revenue of Rs.254.30 lakh as against 1.53 lakh trucks handled and revenue of Rs.227 lakh earned through 82% capacity utilization during 2008-09.

Central Railside Warehouse Company Ltd (CRWC)
CWC  has formed a 100% owned subsidiary company namely Central Railside Warehouse Company Ltd (CRWC) for development and spread over of Railside Warehousing Complexes(RWCs).  The subsidiary was incorporated on 10th July, 2007 and received certificate for commencement of business on 24th July, 2007. CRWC is now operating 14  RWCs with a total storage capacity of 2,33,025 MT.  Construction of RWCs at Dehri-on-sone, Saswad Road (Pune) and Dankuni (Kolkata)  with a total capacity of 44,150 MT is in progress.  Capacity at the existing Railside Warehousing Complexes at Yamuna Bridge, Agra (7,000 MT) and Korkkupet, Chennai (19,500 MT), is being augmented by CRWC to meet user demand.

Fulfilling Social Objectives
By providing warehousing facilities for foodgrains and other agricultural inputs and produce as well as providing infrastructure for EXIM trade, CWC fulfills the following social objectives:
Provides warehousing facilities for price support and price control operations for foodgrains, cotton, jute, essential commodities, etc.
Cross subsidises the storage charges for foodgrains of FCI with other commodities/operations
Provides warehousing facilities for PDS operations as well as in difficult and inaccessible areas
Storage facilities at concessional rate for farmers (30% rebate)
Training of farmers on Post Harvest Management and Loss Minimization  and
Contributes to environmental protection through Disinfestation and Pest Control Operation

Towards Corporate Social Responsibility
Establishment of CWC in March 1957 by the Government through the Agricultural Produce (Development & Warehousing) Corporations Act, 1956 was itself an initial attempt towards Corporate Social Responsibility to check the exploitation of the farmers by the village money lenders, save them from indebtedness, enable them to get loans against the Warehouse Receipt and thus avoid Distress Sale.

An illustrative list of activities supported under CSR Scheme is given below:
Construction/renovation of Primary Health Centres (PHCs)
Assistance for ambulance, medical equipments, etc. for the PHCs
Construction/renovation of village school
Assistance to Gram Panchayats for construction of village roads, community centres, pedestrian paths, drinking water facilities
Assistance for environmental upgradation projects such as:
Creation of Rain Water Harvesting Structures
Desilting of village ponds/water bodies
Tree plantation
Installation of solar panels
Free course books to school children of BPL families/economically weaker sections
Scholarship for sports person
Assistance for creation of rural marketing infrastructure (village huts, community threshing yards, etc)
Logistics support for supply of hygienically cooked hot mid-day meals to the schools in surrounding village
Assistance to the Municipalities for Fogging Machines for malaria/disease control
Training of farmers on safe storage of food grains.
Distribution of Metallic Storage bins
CWC’s Track Record
Consistently making profits since 1966-67
Continuously paying Dividend to the Shareholders including the Government of India
Dividend declared @ 38% for the year 2009-10 and Dividend paid @ 30% for the year 2007-08 and 2008-09
Carrying out all its operations / expansions  from internally generated  resources without any budgetary support from Government of India
Demonstrating its commitment to the welfare of the society by :
o Giving 30% rebate to farmers;
o Setting up warehouses in far flung and remote areas for national development;
o Training of farmers on scientific storage under its Farmers Extension Services Scheme and over  40 lakh farmers trained so far under the scheme.

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