Trade minister Piyush Goyal on Tuesday said the government will shut down state-owned trading companies such as State Trading Corporation (STC), Project and Equipment Corporation (PEC) and MMTC one by one as “the government has no business of remaining in such businesses”.
Press Trust of India on Monday reported that the government was planning to close down STC and PEC.
“Slowly the original purpose of these public sector units have come to an end. It’s not the business of the government to remain in such businesses. The government should not run companies only for gold imports. We have started the discussion and will close them down one by one. The companies have not covered themselves with glory,” Goyal told reporters at the sidelines of an event.
STC reported a loss for the fourth consecutive quarter in the April-June period. As of fiscal 2018-19, the total consolidated debt of the company year stood at ₹2,181 crore. As of March 2019, MMTC had a debt of RS 961.5 crore. In March, Syndicate Bank initiated solvency proceedings against STC for an amount of ₹625 crore.