Recently the news has come on the internet that the Indian government is likely to decide on the closure of the Metals and Minerals Trading Corporation of India (MMTC) on 23 October 2023, as part of its new enterprise policy for Public Sector Undertakings (PSU’s) in non-strategic sectors, the Telegraph notified. Since the news came on the internet it went viral on social media platforms. Now many people must be super curious to know about the whole information about the news. Here we have more information about the news and we will share it with you in this article, so let’s continue the article.
New Enterprise Policy Update
In September previous year, MMTC along with the State Trading Corporation (STC) and Project & Equipment Corporation (PEC), failed their status as canalizing agencies. A decision on the closure of PEC and STC can also be addressed on 23 October 2023, Monday. This year in August, the Securities and Exchange Board of India (SEBI) withdrew MMTC’s stockbroker license because of involvement in illegal paired arrangements connected to the National Spot Exchange Ltd. MMTC engaged in ” paired contracts” without the necessary regulatory support. Scroll down to the next page for more information about the news.
According to the New Enterprise Policy, all PSUs will either be privatized or locked if privatization is not possible within the non-strategic sector. Reports indicate that the earlier approved offer for sale did not attract investor interest.
The judgment on MMTC’s future is going to be made by the Alternative Mechanism (AM), consisting of Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Road Minister Nitin Gadkari. The MMTC operates under the purview of the Commerce Ministry. The government now holds a 99.33% stake in MMTC. You are on the right page for more information about the news, so please read the complete article.
In the fiscal year 2022-2023, the state-run trading company said a profit of, 1,076,07 crore, a substantial progress from the 241,93 crore loss in 2021-22. There have been signs that the fate of STC and PEC will also be examined in the meeting the report added. While the government holds a 90% stake in STC, it is the sole owner of PEC. STC plays a vital role in importing essential items for mass consumption, such as sugar, wheat, edible oils, and pulses while PEC has been the canalizing agency for machinery railway tools import and export. Here we have shared all the information that we had. Stay tuned to us for more updates.