State Trading Corporation

Last updated
State Trading Corporation of India Ltd.
Founded1956
TypeState-owned company

The State Trading Corporation of India Ltd is an Indian government-owned international trading company established in 1956, responsible for managing import and export operations. It functions as an independent entity under the Companies Act, 1956, and operates under the administrative jurisdiction of the Ministry of Commerce & Industry.

Contents

History

In 1956, the government established the State Trading Corporation of India to engage in trade with East European countries. [1] In 1971, STC formed a subsidiary known as PEC India (formerly Project and Equipment Corporation of India Ltd.) to oversee the export of railway and engineering equipment, which commenced operations on October 1, 1963. [2] As STC expanded, it recognized the importance of mineral and metal exports in India's Five Year Plans. Consequently, the government decided to separate STC and establish a dedicated corporation focused solely on mineral and metal trade. In 1997, PEC became an independent entity. [3]

STC diversified its trading portfolio, including the export of various products such as agricultural commodities (e.g., wheat and rice) and essential goods (e.g., sugar and pulses). The company also ventured into the hydrocarbon sector by supplying coal to state electricity boards and importing kerosene. [4]

STC entered into a memorandum of understanding (MoU) with NAFED, an agricultural cooperative, for the export of agricultural commodities to the Republic of Mauritius through a government-to-government arrangement. [5]

However, in September 2019, Trade Minister Piyush Goyal announced the impending closure of STC due to a severe liquidity crisis, [6] as detailed in STC's 2018-19 Annual Report. The crisis stemmed from the classification of STC's account as a bad loan by lending banks due to non-payment of interest on the company's availed banking limits. Consequently, STC halted all payments except salaries to its employees, underscoring the gravity of its financial predicament. [7] [8]

Merger proposal

Commerce and Industry Minister Suresh Prabhu mentioned that a merger of MMTC and STC was under consideration to streamline operations and eliminate overlaps. [9] [10]

However, it was later decided not to proceed with the merger proposal, as it was deemed unlikely to be beneficial. The merger would have resulted in synergies between overlapping operations, and the government would have borne the expenses for voluntary retirement schemes for employees. [3]

Related Research Articles

Events in the year 1953 in the Republic of India.

<span class="mw-page-title-main">Ministry of Railways (India)</span> Indian government ministry responsible for rail transport

The Ministry of Railways is a ministry in the Government of India, responsible for the country's rail transport. The ministry operates as the statutory body of the Indian Railways, an organisation that operates as a monopoly in rail transport and is headed by the Chairman and CEO of Railway Board. The Ministry of Railways along with the Railway Board is housed inside Rail Bhawan in New Delhi.

A sherpa is the personal representative of a head of state or head of government who prepares an international summit, such as the annual G7 and G20 summits. Between the G7 summits there are multiple sherpa conferences where possible agreements are laid out. This reduces the amount of time and resources required at the negotiations of the heads of state at the final summit. The name sherpa—without further context—refers to sherpas for the G7 summit, but the designation can be extended to different regular conferences where the participation of the head of state is required. The sherpa is generally quite influential, although they do not have the authority to make a final decision about any given agreement.

<span class="mw-page-title-main">Pawan Hans</span> Central Public Sector Understaking

Pawan Hans Limited (PHL) is a transport service operated as a central public sector undertaking based at Noida in Delhi NCR, India. It is a Mini Ratna-I category PSU under the ownership of Ministry of Civil Aviation of the Government of India. It has cumulatively flown more than 1 million hours and has had 2.5 million landings on its fleet since its formation. The registered office is located in New Delhi. The corporate headquarter is located at Sector-1 in Noida with regional office at New Delhi, Mumbai and Guwahati. The operations are based at the Juhu Aerodrome in Vile Parle (West), Mumbai.

<span class="mw-page-title-main">Suresh Prabhu</span> Indian politician

Suresh Prabhakar Prabhu is an Indian politician and Chancellor of Rishihood University who was the Minister of Civil Aviation, Railways, Commerce & Industry in the First Modi ministry.

<span class="mw-page-title-main">Ministry of Commerce and Industry (India)</span> Indian government ministry

The Ministry of Commerce and Industry administers two departments, the Department of Commerce and the Department for Promotion of Industry & Internal Trade. The head of the Ministry is a Minister of Cabinet rank.

<span class="mw-page-title-main">Ministry of Textiles</span> Government of India Ministry

The Ministry of Textiles is an Indian government national agency responsible for the formulation of policy, planning, development, export promotion and regulation of the textile industry in India. This includes all natural, artificial, and cellulosic fibers that go into the making of textiles, clothing and Handicrafts.

<span class="mw-page-title-main">Economy of Gujarat</span>

The economy of Gujarat, a state in Western India, is the most industrialised in India, having the highest industrial output of any state in the union.It has the highest exports of any Indian state, accounting for 33% of all Indian exports in 2022-23. It leads in diverse industrial sectors such as chemicals, petrochemicals, dairy, drugs and pharmaceuticals, cement and ceramics, gems and jewellery, textiles and engineering. It has the highest Electricity Production Capacity and Maritime Port Cargo Volume among all states in India. It also has significant agricultural production with major agricultural produce of the state being cotton, groundnuts (peanuts), dates, sugar cane, milk and milk products. Gujarat recorded the lowest unemployment rate in India in 2022, with 4.4% of the labour force being unemployed.

<span class="mw-page-title-main">T. S. Nagabharana</span> Indian filmmaker, theatre personality

Talakadu Srinivasaiah Nagabharana, commonly known as T. S. Nagabharana, is an Indian film director, in the Kannada film industry and a pioneer of parallel cinema. He is one of the few film directors to have straddled the mainstream and parallel cinema worlds.

R. Vaithilingam is an Indian politician and an ex- Rajya Sabha member from the state of Tamil Nadu. He is now present Member of legislative assembly from Orathanad constituency in the state assembly election of 2021.

<span class="mw-page-title-main">MMTC Ltd</span> Foreign exchange company of primary and non-primary products based in India

MMTC Ltd. is one of the two highest earners of foreign exchange for India and India's largest public sector trading body. Not only handling the export and import of primary products such as coal, iron ore, agro and industrial products, MMTC also exports and imports important commodities such as ferrous and nonferrous metals for industry, and agricultural fertilizers. MMTC's diverse trade activities cover third country trade, joint ventures and link deals and all modern forms of international trading. The company has a vast international trade network, spanning almost in all countries in Asia, Europe, Africa, Oceania, and in the United States and also includes a wholly owned international subsidiary in Singapore, MTPL. It is one of the Miniratnas companies.

The Department for Promotion of Industry and Internal Trade (DPIIT) is a central government department under the Ministry of Commerce and Industry in India. It is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives. While individual administrative ministries look after the production, distribution, development and planning aspects of specific industries allocated to them, DPIIT is responsible for the overall industrial policy. It is also responsible for facilitating and increasing the foreign direct investment (FDI) flows to the country.

<span class="mw-page-title-main">Piyush Goyal</span> Indian politician

Piyush Vedprakash Goyal is an Indian politician and chartered accountant serving as a cabinet minister in the Government of India, having portfolios such as Minister of Textiles, Minister of Commerce and Industry and Minister of Consumer Affairs, Food and Public Distribution. He was elevated to the Cabinet Minister position on 3 September 2017. Currently a Member of Parliament for Rajya Sabha from the state of Maharashtra, he is also the current Leader of the House in Rajya Sabha.

<span class="mw-page-title-main">Narendra Singh Tomar</span> Indian politician

Narendra Singh Tomar is an Indian politician and a member of the Madhya Pradesh Legislative Assembly. He is the former Minister of Agriculture and Farmers' Welfare. He has been Minister of Rural Development, Minister of Panchayati Raj, Minister of Mines and Minister of Parliamentary Affairs in the Government of India during different periods of the First and Second Modi ministry. He is a leader of Bharatiya Janata Party. He was also a member of Fifteenth Lok Sabha from 2009 to 2014 from Morena; Sixteenth Lok Sabha from 2014 to 2019 from Gwalior and 17th Lok Sabha from 2019 to 2023 from Morena. In 2019, he changed his constituency and was re-elected to the Lok Sabha from Morena.

<span class="mw-page-title-main">Council On Energy, Environment and Water</span>

The Council on Energy, Environment and Water, commonly known as CEEW, is a Not-For profit Think Tank and policy institution based in New Delhi, India. CEEW was formed to provide independent research-based insights to policymakers for building a sustainable India. The Council also has an office in Lucknow, Uttar Pradesh. It has multiple research projects running across 22 Indian states and other parts of the world.

Federation of Indian Export Organisations (FIEO) is the apex trade promotion organisation in India set up by the Ministry of Commerce, Government of India, and the private trade and industry segment in 1965. The organisation is responsible for representing and assisting Indian entrepreneurs and exporters in foreign markets.

Pradhan Mantri Kisan Samman Nidhi is an initiative by the government of India that give farmers up to ₹6,000 (US$75) per year as minimum income support. The initiative was announced by Piyush Goyal during the 2019 Interim Union Budget of India on 1 February 2019. The scheme has cost ₹75,000 crore per annum and came into effect December 2018.

<span class="mw-page-title-main">Open Network for Digital Commerce</span> Indian private non-profit organisation

Open Network for Digital Commerce (ONDC), is a private non-profit Section 8 company established by the Department for Promotion of Industry and Internal Trade (DPIIT) of Government of India to develop open e-commerce. It was incorporated on 31 December 2022 with initial investment from Quality Council of India and Protean eGov Technologies Limited.

"Economic Cooperation and Trade Agreement" is the first trade agreement between India and Australia. Piyush Goyal Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles said while addressing a press conference on the ECTA. Australia has approved the trade pact between these two countries in its Parliament.

<i>Custody</i> (2023 film) Indian action thriller film written and directed by Venkat Prabhu

Custody is a 2023 Indian period action thriller film directed by Venkat Prabhu and produced by Srinivasa Chitturi under Srinivasaa Silver Screen and Anji Industries. It was shot simultaneously in Telugu and Tamil languages. The film stars Naga Chaitanya, Aravind Swamy, Krithi Shetty, Priyamani, R. Sarathkumar and Sampath Raj. The music was composed by Ilaiyaraaja and Yuvan Shankar Raja, while the cinematography and editing were handled by S. R. Kathir and Venkat Raajen.

References

  1. ↑ "Dismantling of Eastern Bloc, changes in India rob State Trading Corporation its objective". India Today.
  2. ↑ "STC, MMTC & PEC to be denotified for exim transactions". Economic Times.
  3. 1 2 "Piyush Goyal: 'All options open for closure or merger of MMTC, STC, PEC'". Indian Express.
  4. ↑ "The State Trading Corporation of India Limited" (PDF). stclimited.
  5. ↑ "Mauritius: Nafed signs MoU with State Trading Corporation". Indian Cooperative. 2022-09-18. Retrieved 2023-09-13.
  6. ↑ "We are studying work of MMTC, STC, PEC, says Commerce and Industry Minister Piyush Goyal". The Economic Times. 2022-03-30. ISSN   0013-0389 . Retrieved 2023-09-13.
  7. ↑ S, Arun (2017-06-17). "STC stops all payments except salary". The Hindu. ISSN   0971-751X . Retrieved 2023-09-13.
  8. ↑ "State Trading Corporation, once among top public sector units, to be wound up". The Times of India. 2019-09-17. ISSN   0971-8257 . Retrieved 2023-09-13.
  9. ↑ "STC, MMTC merger on cards: Commerce minister Suresh Prabhu". The Times of India. 2018-03-25. ISSN   0971-8257 . Retrieved 2023-09-13.
  10. ↑ "MMTC, STC shares climb on report of potential merger". BusinessLine. 2018-03-26. Retrieved 2023-09-16.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.