Allow Cookies!
By using our website, you agree to the use of cookies
The Union government is considering measures to combat the deteriorating financial health of STC (State Trading Corporation). State Trading Corporation is a public sector unit under the aegis of the Ministry of Trade and Commerce. State Trading Corporation is a government established entity registered under the Companies Act, 1956 that deals with export and import of several products like agricultural products, petrochemicals, edible oil and urea to name a few. It also provides remuneration to farmers and acts as a regulator of trade.
The STC in its annual report for the fiscal year 2018-19 asserted the grave nature of the financial crisis in the Company. Relevant portion of the Annual Report has been shown below:
“STC is facing severe liquidity crisis as all the lender banks have reported STC’s account as NPA due to non-payment of interest on the banking limits availed by the Company, Therefore, at present, the Company has no banking limits, funded or nonfunded, available with it.”
“During the year 2018-19, pursuant to Hon’ble Supreme Court Order dated 06.12.2018, the Company recovered an amount of `1400 Crore from one its major debtors, namely, GSHL/ GSPI. With a view to settle the outstanding dues of banks, the Company had submitted a One Time Settlement (OTS) proposal to the lender banks. After a series of meetings held with the Joint Lenders Forum (JLF) of banks and discussions/ meetings held at various other platforms, the broad terms of settlement have been finalised with the lender banks. Out of the total dues of `1906 Crore approx. (as on 31.12.2018) crystallized with the lender banks, an amount of `1100 Crore has already been paid by STC to the lender banks. The balance amount is also proposed to be paid partly through sale of its immovable properties and partly out of the trade receivables to be realized by the Company.”
The Company has undertaken many loans and is unable to repay them. Many State Owned Banks have designated STC has a non-performing asset (NPA), thus making it more difficult for it to get loans. Many cases have been filed against the STC by various banks in the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT).
The government is therefore mulling the idea to giving 5 years to STC to repay the dues amounting to almost 500 Crores. During which the Banks will be asked to withdraw the cases filed in NCLT and NCLAT.
86540
103860
630
114
59824