The government is expected to take a call on the closure of the Metals and Minerals Trading Corporation of India (MMTC) on October 23 as part of the new enterprise policy for PSUs in the non-strategic sector.
MMTC along with State Trading Corporation (STC) and Project & Equipment Corporation (PEC) were all denotified in September 2022 as a canalising agency. A call on the closure of STC and PEC may also be taken up on October 23.
In August 2023, the Securities and Exchange Board of India cancelled MMTC's licence as a stockbroker for its involvement in illegal paired contracts in a case related to National Spot Exchange Ltd. The firm had traded in “paired contracts", though it did not have the regulatory approval.
In the non-strategic sector, all PSUs will be privatised or closed in case privatisation is not possible as per the New Enterprise Policy.
Sources said the offer for sale earlier approved by the cabinet did not evoke investor interest.
A call would be taken by the alternative mechanism (AM) — a panel comprising finance minister Nirmala Sitharaman, road minister Nitin Gadkari and commerce minister Piyush Goyal. MMTC is part of the commerce ministry.
The government currently holds a 99.33 per cent stake in MMTC.
MMTC used to be a canalising agency for the export and import of high-grade iron ore, manganese ore, chrome ore, copra and several other precious metals. At one time, MMTC was the largest non-oil importer in the country.
The state-run trading firm had posted a profit of Rs 1,076.07 crore in 2022-23 against a loss of Rs 241.93 crore in 2021-22.
Indications are that a call on the closure of STC and PEC would also be taken up at the meeting. While the government holds a 90 per cent stake in STC, it fully owns PEC.
While PEC is the canalising agency for the export and import of machinery and railway equipment, STC imports essential items of mass consumption such as edible oils, pulses, sugar and wheat.
The three are under the administrative control of the commerce ministry and officials indicated that the proposal for closure is under consideration based on the guidelines relating to the non-strategic sector.
