Lok Sabha Question No. 2612 (UNSTARRED), answered on 2018-03-12
Subject: State Trading Corporation
Ministry: COMMERCE AND INDUSTRY
Asked by: TAMRADHWAJ SAHU

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2612(H) TO BE ANSWERED ON 12 th  MARCH,2018

## STATE TRADING CORPORATION

## 2612(H). SHRI TAMRADHWAJ SAHU:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the  details  of  the  execution  of  the  State  Trading  Corporation  including  its  profits earned and losses incurred during the last three years and the current year;
- (b) whether any activity of irregularity or fraud in the Corporation has been seen during the said period due to which it has suffered financial losses;
- (c) if so, the details of the investigation in this regard and the outcome thereof; and
- (d) the  measures  taken  by  the  Government  to  compensate  the  losses  of  the  said Corporation to improve its performance and prevent the recurring of such incidents?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (a) The overall performance of STC during the last three years and current financial year i.e. April-Dec.'17 is as under:

(Rs. in Crore)

|                  |   2014-15 |   2015-16 |   2016-17 |   2017-18 April -December |
|------------------|-----------|-----------|-----------|---------------------------|
| Exports          |      1884 |      1111 |       789 |                       249 |
| Imports          |     12042 |      8735 |      6382 |                      8260 |
| Domestic Sales   |       471 |       633 |       581 |                       247 |
| Total Turnover   |     14397 |     10479 |      7752 |                      8756 |
| Profit After Tax |        26 |        18 |      -166 |                        39 |

- (b) & (c): During the last three years (from April 2014 onwards), in matters relating to nine (09) cases, certain irregularities have come to notice due to which the Corporation had suffered financial losses.    Three cases were referred by STC to CBI and one more case was taken up directly by CBI.   CBI has filed chargesheet in one case, investigation is in progress in two cases and one case was not taken up by CBI for investigation.    FIR has been lodged in two cases with local police and police has filed  a  chargesheet  in  one  case.    In  addition,  STC  has  initiated  disciplinary proceedings in eight cases.
- (d) The  performance  of  the  Company  is  reviewed  regularly  by  its  Board  of  Directors which  includes  two  Government  Nominee  Directors.    The  performance  of  the Corporation  is  reviewed  regularly  by  Department  of  Commerce.      STC  has  been directed to make all efforts to expedite recovery of outstanding dues and the Board has been directed to regularly monitor/review the progress of recovery.

STC has reviewed, streamlined  and  strengthened  its  internal  systems,  procedures and guidelines.  The Corporation has identified and implemented a number of costcutting measures to improve its profitability which inter-alia includes closure of nonproductive branch offices, reduction in manpower and administrative cost, etc.   The Corporation  is  laying  greater  focus  on  business  with  Central/State  government departments and their entities.

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