Lok Sabha passes Warehousing Corporations (Amendment) Bill, 2015 on 18th March 2015.
The Warehousing Corporations (Amendment) Bill, 2015 seeks to do away with the Center’s responsibility of being a financial guarantor to Central Warehousing Corporation (CWC). The bill was passed by Lok Sabha with Customer Affairs Minister Ram Vilas Paswan ruling out any move to privatize the Mini-Ratna Company.
The bill was brought by previous UPA government in Lok Sabha and cleared by Parliamentary Standing Committee. However, it lapsed with the dissolution of 15th Lok Sabha.
Key Highlights of the bill
- Date of Passing: 18th March 2015.
- The Bill seeks to amend the Warehousing Corporations Act, 1962.
- The bill put to end the Central Government’s responsibility of being a financial guarantor to the CWC in order to follow the criteria to be a Mini-Ratna enterprise status.
- The government has also not given any guarantee besides the payment of minimum guaranteed dividend as required under some provisions of the act.
- The bill seeks to withdraw the guarantee of the government and absolves it of its responsibility of being the guarantor,
“The warehousing corporation (amendment) bill has a limited scope and was necessitated by a legal requirement which said the government will not be a guarantor for a “grade one” mini-ratna company like CWC”, Paswan said.