1,100cr loans to lenders
erty, Syndicate Bank will withdraw ongoing bankruptcy proceedings in the National Company Law Tribunal.
In June 2018, TOI had reported on the two PSUs turning NPAs.
In1956, it was STC that was the first trading company to be set up, primarily to trade with east European countries, but expanded its footprint over the years. So, it shipped out wheat and rice for the government and was the canalising agency, or the designated company, to import a host of products — from “high-value” items such as gold and silver to commodities such as sugar and pulses. In between, it had also diversified into hydrocarbons: when it was supplying coal to state electricity boards besides importing kerosene. Plus, it had subsidiaries that dealt in tea and spices.
“It was the mother ship and MMTC and PEC emerged from it,” said a former executive.
PEC was incorporated as a subsidiary of STC in 1971 to handle the canalised business of the export of railway and engineering equipment and turned into an independent entity in 1997. But as the private sector grew, the PSU had less to do with project exports and more with importing pulses and other commodities during periods of scarcity.
During their heyday, the bosses of STC and MMTC could walk into a minister’s room but with the government lifting import restrictions in 1991, life became tough for these PSUs, especially after local manufacturing of cars and several other products began.