Business News: Government Announces to Shutdown Three Companies Including MMTC

24 Oct, 2023 Author: Ayushee Joshi

Business News: The government intends to sell MMTC (Metals and Minerals Trading Corporation of India), STC (State Trading Corporation), and PEC (Project and Equipment Corporation of India Limited), and a meeting will be held to discuss the closure of these three government-owned firms. These three firms lost their intermediate agency status in September 2022, with the Commerce Ministry declaring them as business channeling agents.

More About MMTC, STC, PEC

Market watchdog SEBI suspended MMTC’s brokerage license in August 2023 due to unlawful pair contracts with National Spot Exchange Limitations. While MMTC and STC have 99.33 percent and 90 percent government stakes, respectively, PEC is entirely owned by the government. MMTC served as a middleman for the import and export of high-quality iron, manganese, chrome ore, copra, and other important commodities. STC is vital in the import of key commodities such as edible oil, legumes, sugar, and wheat, whereas PEC serves as an intermediary agency for the import and export of machinery and railway equipment. These three businesses are overseen by the Commerce Ministry.