India

STC, MMTC & PEC to be denotified for exim transactions

The government will denotify the State Trading Corporation (STC), Project & Equipment Corporation (PEC), Metals & Minerals Trading Corporation (MMTC) and STCL Limited as canalised/nominated agencies for all businesses in the EXIM policy, the commerce and industry ministry said.

“The utility of CPSEs viz MMTC, STC and PEC Limited has been examined and it has been decided that there is no need for any canalising agency in this department,” the department of commerce said in an office memorandum dated September 6, adding that a proposal for the closure of the three agencies is under consideration in line with the New Enterprise Policy for CPSEs in the non-strategic sector.

The three PSUs are under the administrative control of the commerce and industry ministry which was studying their work.

The government had decided to shutdown many PSUs in 2019 after a review of investments by central public sector enterprises (CPSEs) in publicly listed state-level entities to ensure that these CPSEs are not saddled with unrelated ventures or loss-making firms. In all, there are around 500 state level public enterprises (SLPEs) of which 200 are loss making.

STC was set up in 1956 as a trading arm of the government to undertake trade with East European countries while PEC was incorporated as a subsidiary of STC in 1971 to handle the canalised business of export of railway and engineering equipment and became an independent firm in 1997.

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