The inordinate delay in Union govt's approval to the proposal recommending merger of STC and MMTC, state owned trading companies under the administrative control of Ministry of Commerce & Industry, appears unlikely now. If this was true the Union Govt would left with no option but infuse funds into STC to keep it running. It may be mentioned that offering VRS to approx. 700 employees of STC was part of the proposed merger plan.
State Trading Corporation (STC) and Metals & Minerals Trading Corporation (MMTC) were set up in 1956 and 1963 respectively. MMTC deals as an agency for import and export of non-ferrous metals and fertilisers whereas STC is an agency for import of essential items of mass consumption such as wheat, pulses, sugar and edible oils.
The industry observers say that post liberalisation of economy state trading firms have lost their relevance and are left with less scope and opportunity to sustain and ern profits.
Contrary to the aforementioned views, the current financial performance of both trading firms appear optimistic. In FY 2017-18 MMTC posted a consolidated net profit of approx. 37 crore rupees compared to a net loss of approx. 30 crore in the previous fiscal. STC too posted a profit of approx. 37.52 crore in FY 2017-18 against a net loss of rupees 166 crore in preceding FY. It is believed that the govt may come up with a revival plan for these firms.
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Merger of MMTC & STC unlikely
By IndianMandarins - 2018-07-22 18:28:23
The inordinate delay in Union govt's approval to the proposal recommending merger of STC and MMTC, state owned trading companies under the administrative control of Ministry of Commerce & Industry, appears unlikely now. If this was true the Union Govt would left with no option but infuse funds into STC to keep it running. It may be mentioned that offering VRS to approx. 700 employees of STC was part of the proposed merger plan.
State Trading Corporation (STC) and Metals & Minerals Trading Corporation (MMTC) were set up in 1956 and 1963 respectively. MMTC deals as an agency for import and export of non-ferrous metals and fertilisers whereas STC is an agency for import of essential items of mass consumption such as wheat, pulses, sugar and edible oils.
The industry observers say that post liberalisation of economy state trading firms have lost their relevance and are left with less scope and opportunity to sustain and ern profits.
Contrary to the aforementioned views, the current financial performance of both trading firms appear optimistic. In FY 2017-18 MMTC posted a consolidated net profit of approx. 37 crore rupees compared to a net loss of approx. 30 crore in the previous fiscal. STC too posted a profit of approx. 37.52 crore in FY 2017-18 against a net loss of rupees 166 crore in preceding FY. It is believed that the govt may come up with a revival plan for these firms.
