Government mulls closing down three Public Sector Units.

The Union Government is mulling closing down three Public Sector Units — Metals & Minerals Trading Corporation (MMTC), State Trading Corporation (STC), and Project & Equipment Corporation (PEC).

After denotification, these companies will no longer remain canalising agencies for the import and export of goods for the government.

According to an office memorandum of the commerce and industry ministry, the utility of these undertakings — MMTC, STC and PEC Ltd — has been examined and it has been decided that there is no need for any canalising agency in the department of commerce.

“…. Wherever required, line ministry can nominate their PSUs (Public Sector Undertakings), etc. as a canalising agency,” it said.

Under the current foreign trade policy (2015-20), there are seven nominated agencies for the import of precious metals and that include four from the department of commerce — MMTC, STC, PEC Ltd, and STCL Ltd, media reported.

“It is also relevant to mention here that keeping in view the guidelines of the Department of Public Enterprises on New Enterprise Policy for Central Public Sector Enterprises (CPSEs) in the non-strategic sector, the proposal for closure of MMTC, STC, and PEC is under consideration,” it said.

State Trading Corporation (STC), Project & Equipment Corporation of India (PEC), and Metals & Minerals Trading Corporation of India (MMTC) are under the administrative control of the ministry.

MMTC and STC were created in 1963 and 1956, respectively. PEC Ltd was carved out of the STC in 1971-72.

MMTC was a canalising agency for the import and export of high-grade iron ore, manganese ore, chrome ore, copra, and red sanders and the import of precious metals.

Similarly, STC was a canalising agency for imports of essential items of mass consumption such as wheat, pulses, sugar, and edible oils.

Meanwhile, PEC was engaged in the export and import of machinery and railway equipment.

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