Shafaethossen at 02:07, 17 September 2023

2023-09-17T02:07:23Z

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{{Short description|State-owned trading company}}
{{Infobox organization
| name = State Trading Corporation of India Ltd.
| logo = 
| type = State-owned company
| founded = 1956
| headquarters = 
| key_people = 
| products =
| revenue = 
| net_income = 
| assets = 
| num_employees = 
| website = 
}}

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|Companies Act, 1956]], and operates under the administrative jurisdiction of the [[Ministry of Commerce and Industry (India)|Ministry of Commerce & Industry]].

== History ==
In 1956, the government established the State Trading Corporation of India to engage in trade with [[Eastern Europe|East European]] countries.<ref>{{Cite news |title=Dismantling of Eastern Bloc, changes in India rob State Trading Corporation its objective |work=India Today |url=https://www.indiatoday.in/magazine/economy/story/20001204-dismantling-of-eastern-bloc-changes-in-india-rob-state-trading-corporation-its-objective-778532-2000-12-03}}</ref> 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.<ref>{{Cite news |title=STC, MMTC & PEC to be denotified for exim transactions |work=Economic Times |url=https://economictimes.indiatimes.com/news/india/stc-mmtc-pec-to-be-denotified-for-exim-transactions/articleshow/94060273.cms?from=mdr}}</ref> As STC expanded, it recognized the importance of mineral and metal exports in [[Five-Year Plans of India|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.<ref name=":0">{{Cite news |title=Piyush Goyal: ‘All options open for closure or merger of MMTC, STC, PEC’ |work=Indian Express |url=https://indianexpress.com/article/business/piyush-goyal-all-options-open-for-closure-or-merger-of-mmtc-stc-pec-6004545/}}</ref>

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]].<ref>{{Cite news |title=The State Trading Corporation of India Limited |work=stclimited |url=http://www.stclimited.co.in/sites/default/files/openpdf_301.pdf}}</ref>

STC entered into a [[memorandum of understanding]] (MoU) with [[National Agricultural Cooperative Marketing Federation of India|NAFED]], an agricultural cooperative, for the export of agricultural commodities to the [[Mauritius|Republic of Mauritius]] through a [[E-governance|government-to-government]] arrangement.<ref>{{Cite web |title=Mauritius: Nafed signs MoU with State Trading Corporation |url=https://www.indiancooperative.com/co-op-news-snippets/mauritius-nafed-signs-mou-with-state-trading-corporation/ |access-date=2023-09-13 |website=Indian Cooperative |language=en-US}}</ref>

However, in September 2019, Trade Minister [[Piyush Goyal]] announced the impending closure of STC due to a severe liquidity crisis,<ref>{{Cite news |title=We are studying work of MMTC, STC, PEC, says Commerce and Industry Minister Piyush Goyal |work=The Economic Times |url=https://economictimes.indiatimes.com/news/india/we-are-studying-work-of-mmtc-stc-pec-says-commerce-and-industry-minister-piyush-goyal/articleshow/90533415.cms?from=mdr |access-date=2023-09-13 |issn=0013-0389}}</ref> 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.<ref>{{Cite news |last=S |first=Arun |title=STC stops all payments except salary |language=en-IN |work=The Hindu |url=https://www.thehindu.com/business/stc-stops-all-payments-except-salary/article19095182.ece |access-date=2023-09-13 |issn=0971-751X}}</ref><ref name=":02">{{Cite news |title=State Trading Corporation, once among top public sector units, to be wound up |work=The Times of India |url=https://timesofindia.indiatimes.com/business/india-business/state-trading-corporation-once-among-top-public-sector-units-to-be-wound-up/articleshow/71159064.cms |access-date=2023-09-13 |issn=0971-8257}}</ref>

== Merger proposal ==
Commerce and Industry Minister [[Suresh Prabhu]] mentioned that a merger of [[MMTC Ltd|MMTC]] and STC was under consideration to streamline operations and eliminate overlaps.<ref>{{Cite news |title=STC, MMTC merger on cards: Commerce minister Suresh Prabhu |work=The Times of India |url=https://timesofindia.indiatimes.com/business/india-business/stc-mmtc-merger-on-cards-commerce-minister-suresh-prabhu/articleshow/63452343.cms |access-date=2023-09-13 |issn=0971-8257}}</ref><ref>{{Cite web |title=MMTC, STC shares climb on report of potential merger |url=https://www.thehindubusinessline.com/markets/stock-markets/mmtc-stc-shares-climb-on-report-of-potential-merger/article23353126.ece |access-date=2023-09-16 |website=BusinessLine |language=en}}</ref>

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.<ref name=":0" />

== References ==
<references />

== External links ==

* [http://www.stclimited.co.in/ Official website]

[[Category:1956 establishments in India]]
[[Category:Trading companies|India]]
[[Category:Government-owned companies of India]]
[[Category:Companies listed on the National Stock Exchange of India]]
[[Category:Companies listed on the Bombay Stock Exchange]]
[[Category:Indian companies established in 1956]]

State Trading Corporation - Revision history

Shafaethossen at 02:07, 17 September 2023