STC net profit at Rs 800m

KATHMANDU, SEP 13: 

Salt Trading Corporation (STC), despite taking privileges from the government as a company operating under the Public Private Partnership model, registered a nominal growth in its net profit in fiscal year 2011-12, according to it. 

In a programme organised here in the capital to mark the 50th anniversary of the corporation, general manager at STC Urmila Shrestha said that its net profit was worth Rs 650 million in fiscal year 2010-11. However, the corporation witnessed a nominal growth in fiscal year 2011-12, a corporation source said, adding that its net profit in 2011-12 was approximately Rs 800 million.

Salt Trading traded essential commodities worth Rs 4.61 billion in fiscal year 2011-12, according to Shrestha. In the programme, director general at the Department of Commerce and Supply Management Narayan Prasad Bidari urged the corporation to maintain transparency. Salt Trading should publicise the details of its transactions, he said, adding that a clear and transparent trade mechanism will help the company maintain credibility.

The corporation should also clarify all allegations against it, said Bidari, hinting on the recent corruption charge worth billions of rupees labelled against it. 

Similarly, secretary at the Ministry of Information and Communications Surya Prasad Silwal said that the government should utilise Salt Trading to control market price.

The government should utilise Salt Trading to control syndicate and cartel of private players, he said, adding that Salt Trading can play an important role in controlling the price of essential commodities by opening its own outlets with a reasonable price structure.

Salt Trading needs to contribute to ensure proper supply and distribution of essential consumable goods and erode black-marketing, said Silwal. STC has an investment from the private sector and National Trading at a ratio of 79:21, respectively, according to it.

Salt trading — one among the four listed trading companies under the trading sub group — has listed 394,683 units of shares at Nepal Stock Exchange at the face value of Rs 100 per unit that was traded at Rs 261 per unit on February 13, the last trading date.

Source: THT