Why has Central Railside Warehouse Company been merged with Central Warehousing Corporation?


The Union Cabinet chaired by Prime Minister Narendra Modi has approved the merger of the Central Railside Warehouse Company (CRWC) with its holding enterprise Central Warehousing Corporation (CWC) to unify similar functions of both companies to improve efficiency and reduce expenditure. 

The Central Railside Warehouse Company is a PSU with mini-Ratna status. The merger is expected to unify similar functions of both the companies including warehousing, handling and transportation through a single administration to promote efficiency. 

CRWC-CWC Merger: Key Details

• The merger will lead to the transfer all assets, liabilities, rights and obligations of CRWC with CWC.

• It is expected to facilitate optimum capacity utilisation, transparency, accountability, besides ensuring financial savings and leverage railway siding for new warehousing capacities.

• The merger is expected to bring down the management expenditure of Railside Warehouse Complexes (RWCs) by about Rs 5 crore.

• It will save expenditure that goes in corporate office rent, the salary of employees and other administrative costs.

• The capacity utilisation of the RWCs will also improve as CWC can store commodities other than the ones stored presently like cement, fertiliser, sugar, salt and soda. 

• It will also facilitate the setting up of at least 50 more railside warehouses near goods-shed locations. 

• It will also generate employment opportunities that is equal to 36,500 man days for skilled workers and 9,12,500 man days for unskilled workers. 

When will the merger happen?

The merger is expected to be completed within eight months from the date of the decision.


The merger is another step towards the Prime Minister’s call for ‘Minimum Government Maximum Governance’, promoting ease of doing business and bringing private sector efficiencies in public sector undertakings (PSUs).

About Central Railside Warehouse Company

• The Central Railside Warehouse Company is a profit-making PSU. It had formed a separate subsidiary company Central Warehousing Corporation (CRWC) on July 10, 2007 to plan, develop, promote, acquire and operate Railside Warehouse Complexes, terminals and multimodal logistics hubs on land leased from Indian Railways or other sources. 

• The Central Warehousing Corporation has about 50 employees and 48 outsourced personnel. 

• It currently operates about 20 railside warehouses across the country. 

• The net worth of the company stood at Rs 137.94 crore as on March 31, 2020.

Where was there a need for merger?

The Central Railside Warehouse Company had developed specialisation, expertise and goodwill in the development and operation of Railside Warehouse Complexes.

However, due to a shortage of capital and due to some of the restrictive clauses in its Memorandum of Understanding with the Railways Ministry, its growth pace was not as expected.

The Central Warehousing Corporation is the sole shareholder of CRWC and all the assets, liabilities, rights and obligations will be transferred to it. There will be no financial loss to either and a separate division with the name ‘RWC Division’ will be created by CWC for handling operations and marketing of RWCs.

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