1,100cr loans to lenders

The Times of India (New Delhi edition) - - Times Global -

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.

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