Govt eyes IBC route for STC, PEC closure

The government is reconsidering the closure of State Trading Corporation of India Limited (STC) and PEC Limited through the Insolvency and Bankruptcy Code (IBC). This marks the first instance of pursuing CPSE closure via this mechanism, prompting inter-ministerial discussions. A senior bank executive cautioned that this approach could set a negative precedent, potentially impacting lending strategies for government-owned firms.