WDRA's Pursuit for eNWR Preferential Treatment Persists

The Warehousing Development and Regulatory Authority (WDRA) continues to urge the RBI to grant preferential treatment to Electronic Negotiable Warehouse Receipt (eNWR) for financing. Despite the RBI previously declining due to low registered warehouses, the PSL limit for eNWRs increased from Rs 50 Lakh to Rs 75 Lakh. WDRA aims to increase registered warehouses and remains persistent in advocacy.

The Warehousing Development and Regulatory Authority (WDRA) is once again set to approach the Reserve Bank of India (RBI) to seek preferential treatment for Electronic Negotiable Warehouse Receipts (eNWR), according to a Parliamentary report released on Monday.

Despite initial resistance from the RBI, which cited a limited number of registered warehouses as a hurdle, the central bank increased the Priority Sector Lending (PSL) limit for eNWRs from Rs 50 lakh to Rs 75 lakh. This marks a significant win for the WDRA, which is determined to further its cause.

A recommendation from a Parliamentary Standing Committee has bolstered the WDRA's efforts, urging continuous pursuit for preferential eNWR loans as more warehouses register. The WDRA has stepped up initiatives to have state warehousing corporations onboard, though challenges remain with some facilities not meeting regulatory standards.

(With inputs from agencies.)