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Debt-ridden STC, PEC to shut shop

Recently, at a high-level meeting in August, it was decided that the Commerce Ministry will initiate the process of winding up debt-ridden State Trading Corporation (STC), and Project and Equipment Corporation of India (PEC). STC, which is neck deep in a severe liquidity crisis has become a NPA due to non-payment of interest on the banking limits availed by the company. During 2018-19, STC has reported a net loss (after tax) of Rs 881 crore, as compared to 2017-18, when it earned a net profit (after tax) of about Rs 38 crore. The total outstanding for PEC with the banks is Rs 1, 390 crore as on December 2018. It is another PSU with the menace of high NPAs.