Monday, 21st November 2005 (3015 views)

The Indian Central Warehousing Corporation (CWC) is setting up gold storage vaults across its network of warehouses, the Hindu Business Line has reported.

CWC already offers silver traders a similar service but is extending its portfolio to gold in a bid to further aid members of the country's three commodity exchanges.

The announcement could mark a pivotal moment in Indian gold trading as CWC said it would open two gold vaults in each Indian state and as many as 100 in total.

CWC has high hopes for the fledgling services.

"We will be setting up vaults at our godowns where the farmers can deposit their gold. Over time, we hope that the deposit receipt will become a negotiable instrument for the holder," said CWC chairman, S. K. Tuteja.

Mr Tuteja said CWC has a key location advantage over rivals as most of its warehouses sit conveniently within the city limits.

The government-owned company also lists its high-level security set-up as a plus point.

 

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