Search on
News Title
News Details
Odisha to sign MoU with MSTC for E auction of minerals
569 times viewed.
Saturday, 17 Nov 2012

Business Standard reported that the Odisha government will enter into a MoU with Kolkata based MSTC Ltd for selling of key bulk minerals like iron ore, manganese and chrome ore on the E auction platform.

The MoU would outline the roles, responsibilities, scope of work and remuneration for MSTC. A suitable government order will be issued, making e-auction compulsory.

Electronic sale of minerals from Odisha is likely to begin from January 2013.

The state government, through a recent notification, had stated that a decision has been taken for introduction of electronic sale of iron ore, manganese and chrome ore by all lessees and licensees in order to bring transparency and improvement in the existing system as well as to generate more revenues.

The notification said that “E-auction would be a progressive measure to curb illegal mining.”

E-auction will fist begin with iron ore and will be later extended to chrome and manganese ore. Electronic sale of different grades of iron ore is set to rake in incremental revenue of INR 400 crore per year for the state government. Mining revenue contributed INR 4517 crore to the state exchequer in 2011-12 of which iron ore had the lion's share of nearly 70%.

MSTC would set up its office in Bhubaneswar for coordination and execution of e-auction related work. All users of e-auction platform will have to register with the MSTC website either as buyer or seller. Registration of buyers and sellers will be a continuous process. Users from the Odisha government will be provided with a master password by MSTC for monitoring purpose.

The sellers would forward the list of material with all details to MSTC in soft copy for creating online auction catalogue. The details would include the reserve price to be fixed by the seller. The reserve price would be the start price for the e-auction.

Meanwhile, MSTC will schedule e-auction in consultation with the seller. Only those companies which are registered with the Odisha government as consignees are eligible to participate in the e-auction subject to their getting registered with the MSTC website and submission of requisite earnest money deposit.

The state government had recently formed a 5 member panel headed by Mr Rajesh Verma steel & mines secretary to decide the roadmap for e-auction. The panel will also have Mr Deepak Mohanty director (mines), Mr Saswat Mishra CMD of state controlled Odisha Mining Corporation and one representative (not below the rank of additional secretary) each from the law and finance departments as members. It is slated to have its maiden meeting on November 22nd.

Source - Business Standard


This is alternative content.

More Indian News