A high-level meeting chaired by Union Commerce and Industry Minister Piyush Goyal is likely to take a call on the closure of government-owned Metals and Minerals Trading Corporation of India (MMTC), State Trading Corporation (STC) and Project & Equipment Corporation of India Limited (PEC) on October 23, in accordance to dependable sources.
The closure of the three firms has been hanging hearth after the Union Commerce Ministry determined to denotify them as canalising companies for imports and exports final yr.
In a significant embarrassment, the Securities and Exchange Board of India (SEBI) had cancelled the licence of MMTC Ltd in August as a inventory dealer for its involvement in unlawful ‘paired contracts’ in a case associated to National Spot Exchange Ltd (NSEL).
MMTC traded in “paired contracts”, which didn’t have regulatory approval.
The Ministry has acknowledged that the utility of the three central public sector buying and selling firms was examined and it was of the view that there isn’t any want for any canalising company within the division of commerce.
The situation pertaining to the closure of the three central public sector undertakings has additionally been examined by the Niti Aayog.
The Ministry had additionally acknowledged, “that holding in view the rules of Department of Public Enterprises on New Enterprise Policy for CPSEs within the non-strategic sector, the proposal for closure of MMTC, STC, and PEC is into consideration”.
MMTC was a canalising company for the import and export of high-grade iron ore, manganese ore, chrome ore, copra, and valuable metals.
STC was a canalizing company for imports of important gadgets of mass consumption akin to wheat, pulses, sugar, and edible oils, whereas PEC was the company for the export and import of equipment and railway gear.
MMTC and STC had been set up 1963 and 1956, respectively whereas PEC Ltd was constituted in 1971-72.
(With inputs from IANS)