New Delhi, April 8: The Disinvestment Commission today recommended splitting Central Warehousing Corporation (CWC) into several companies before it is privatised.

The commission has also taken a decision against immediate disinvestment of Numaligarh refinery. At the same time, it is believed the government has decided to shelve moves to privatise Brahmaputra Valley Fertiliser Corporation Limited as the firm has shown significant financial improvement.

In its latest report submitted to the government recently, the commission has said that three companies would be formed to take over the assets of CWC along its major lines of business. Another 17 companies would be set up to take over the stake of CWC in state warehousing corporations.

The government holds over 55 per cent in CWC, while State Bank of India (SBI) holds a 21 per cent stake.

CWC was set up in 1956 with the mandate to prevent forced sale of produce by farmers at low prices. The corporation currently runs 473 warehouses with a combined capacity of 92 million metric tonnes. CWC also holds 50 per cent in 17 state warehousing corporations.

The commission has recommended transfer of assets and liabilities of CWC and state warehousing corporations to newly formed companies. Later, the entire government equity in two companies dealing with general and port warehousing could be divested to strategic partners.

For the third company, which would deal with foodgrains, the commission said any decision on privatisation should be taken within three years in line with progress of private sector participation in the sector and growth of private sector warehouses. It will also take into account establishment of regulatory framework.

The commission has also favoured action to repeal the Warehousing Corporations Act, 1962. CWC provides price support to the agricultural sector and is one of the biggest public warehouse operators in the country, offering logistic services to a diverse group of clients.