MMTC, STC gain as government approves Rs 113.40 crore reimbursement

MUMBAI: Shares of MMTC and STC today rose by up to 4 per cent as the government approved reimbursement to the state-owned firms for incurring losses on import of pulses between 2006 and 2011.

MMTC's scrip climbed 3.84 per cent to Rs 41.90 and STC went up by 1.01 per cent to Rs 160.40 on BSE.

The government today approved reimbursement of Rs 113.40 crore to state-owned MMTC, PEC, STC and cooperative NAFED for incurring losses on import of pulses between 2006 and 2011.

"The Cabinet has approved the proposal of Ministry of Food and Consumer Affairs to reimburse Rs 113.40 crore of losses on pulses imported between 2006-2011 by NAFED, PEC, STC and MMTC, apart from losses incurred in the sale of pulses up to six months after closure of the scheme," a statement said.

This will enable PSUs to be financially sound to intensify trading activities to cool down prices of essential commodities, it said.