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Dr Arvind Pandalai

G Srinivasan

New Delhi, Aug. 15 The State Trading Corporation (STC) has tied up with a number of public sector undertakings (PSUs) to leverage each other’s strengths and synergies in a bid to increase its turnover and also improve its profitability, prodded by the phenomenal growth in its topline in 2006-07.

Speaking to Business Line , the Chairman and Managing Director, STC, Dr Arvind Pandalai said that STC has signed MoUs with leading PSUs — National Thermal Power Corporation (NTPC), Bharat Earth Movers Ltd (BEML), Metal Scra p Trading Corporation (MSTC) for this purpose.

He said that under the MoU with NTPC, STC will supply five million tones of non-coking steam coal for its power plants. Till end-March 2007, 1.6 million tonnes of coal valued Rs 643 crore has been delivered to various plants of NTPC. The MoU singed with BEML was for pooling of resources for trading of coal and iron ore.

Dr. Pandalai said that according to the MoU STC has signed with MSTC, this fiscal STC can avail itself of services for procurement and disposal of commodities including sharing their e-commerce portal. “The two companies would follow a consortium approach when dealing with big customers, thereby sharing risks besides partaking of market information pertaining to common areas of trade with each other”, he added.

STC has recorded an all-time high turnover of Rs 14355 crore and it has surpassed the full year target committed in the MoU with the government by 43 per cent. While export turnover grew by 167 per cent over previous year’s level at Rs 2900 crore in 2006-07, import turnover grew by 95 per cent to reach the highest level of about Rs 10,700 crore with wheat import of 55 lakh tonnes at Government’s behest amounting to Rs 5000 crore.

Mr. Pandali said that given the first quarter turnover the Corporation logged during Apr-June 2007 at Rs 2770 crore, STC would easily surpass the MoU target for the current fiscal as the company has lined up a string of new initiatives including the MoUs it has signed with PSUs.

After expanding its overseas steel operations to Bulgaria and registering higher volumes from extant operations in Philippines, STC now proposes to execute similar works in Nigeria to give an impetus to its metals and mineral business. Plans are also afoot to expand STC’s iron ore business in a big way as the company has recently been allotted a plot of land at Paradeep Port in Orissa for undertaking iron ore operations. Dr. Pandalai noted that STC has entered into MoU for promotion of sale of Jatropha plantation, bio-fertilisers, and bio-pesticides within the country and abroad. This also covers sale of plant and machinery/technology required for conversion of Jatropha seeds into bio-fuels and proposals have already been forwarded to Surinam, Myanmar and Philippines, he added.

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