The erstwhile disinvestment commission had recommended that government offload its full equity in the PSU. The core group of secretaries, which met recently, has accepted the commission's recommendations on MSTC, according to official sources.

The sources maintained that the privatisatin of the PSU will be complete in the current fiscal.

MSTC also has a subsidiary, Ferro Scrap Nigam Ltd (FSNL). MSTC holds 60 per cent and Harsco Corporation Inc, US, 40 per cent of FSNL. FSNL is engaged in salvaging and processing of scrap for recycling in the SAIL steel plants and elsewhere.

In the case of MSTC, the sell-off panel had suggested 100 per cent disinvestment along with its holding in FSNL. The recommendation has been accepted by the core group of secretaries.

MSTC has an authorised capital of Rs 5 crore and paid-up capital of Rs 2.2 crore. The government holds 90 per cent with the rest vested with the Steel Furnace Association.

The company's reserves and surplus on March 31, 1999, was Rs 50.32 crore. It undertakes disposal of ferrous scrap and other secondary arisings from SAIL and Rashtriya Ispat Nigam Ltd. It also undertakes the disposal of scrap, surplus stores, etc, from otherr PSUs and government departments in competition with any private trader.

In the first half of 1999-2000, MSTC registered a profit of Rs 1.91 crore before tax. Sales exceeded Rs 232 crore, against Rs 215.56 crore in the corresponding period in the previous fiscal. The target was Rs 228 crore.In the area of domestic marketing, a target of Rs 565 crore was fixed for 1999-2000. It was anticipated that MSTC will be able to do some business in the finished steel, but it could not be done because of fall in the disposal of scrap.

However, the company expects to achieve the target for 1999-2000. After decanalisation in February 1992, the demand for imported steel came down considerably. So, the company enlarged its import basket and it undertakes import of scrap on behalf of big industrial houses on back-to-back order basis. u The volume of imports achieved during April-September 1999 was Rs 89.35 crore against the target of Rs 55 crore and Rs 28.78 crore achieved during the corresponding period in the previous fiscal.

Headquartered in Calcutta, MSTC employs 281 people.