MSTC auction Rules

MSTC stands for Metal Scrap Trade Corporation Limited, which is a government-owned company in India responsible for various e-commerce activities, including conducting auctions for various items such as scrap, minerals, and surplus assets. While the specific rules may vary depending on the type of auction and the items being auctioned, here are some general guidelines that are commonly followed:

1. Registration: Interested parties usually need to register with MSTC to participate in their auctions. This registration process may involve providing certain documents and information to verify identity and eligibility to participate.

2. Bid Deposit: Some auctions may require participants to submit a bid deposit before they are allowed to bid. This deposit is usually refunded if the participant does not win the auction, but forfeited if they do win and fail to complete the purchase.

3. Bidding Process: The bidding process typically takes place online through MSTC's auction platform. Participants can place bids on items within specified time frames. Bidders may be able to submit single bids or set up automatic bidding up to a predetermined maximum amount.

4. Bid Increments: There are usually predefined bid increments that dictate how much higher each bid must be compared to the previous bid. This prevents minimal increases and ensures a fair bidding process.

5. Reserve Price: Some auctions may have a reserve price, which is the minimum price that the seller is willing to accept for the item. If the bidding does not reach this reserve price, the item may not be sold.

6. Winning Bidder: The highest bidder at the end of the auction period is typically declared the winning bidder. They are then legally obligated to complete the purchase according to the terms and conditions of the auction.

7. Payment: Winning bidders are usually required to make payment within a specified time frame after the auction ends. Accepted forms of payment may include bank transfers, demand drafts, or online payment methods.

8. Delivery/Collection: Depending on the type of items being auctioned, winning bidders may need to arrange for the collection or delivery of the items themselves. MSTC may provide assistance or guidelines regarding this process.

9. Taxes and Duties: Participants should be aware of any applicable taxes, duties, or other fees associated with their purchases. These may vary depending on the nature of the items being auctioned and the regulations of the relevant authorities.

10. Dispute Resolution: In case of any disputes or discrepancies, MSTC may have a process in place for dispute resolution, which could involve arbitration or mediation.

MSTC auction rules:

Objective:
The Forward e-Auction scheme aims to provide coal consumers with assured supply over a long period through online bidding, ensuring transparency and equal opportunities.

Eligibility & Registration:

• Indian coal consumers can participate for own consumption, not resale.
• Registration involves submitting necessary documents to nominated Service Providers.
• Each consumer receives a Unique User ID and Password for online access.

Photo ID Cards:

• Service Providers issue Photo Identity Cards with unique registration numbers to authenticated bidders.

Earnest Money Deposit (EMD):

• Consumers deposit non-interest bearing EMD covering 10% of reserve price.
• EMD allows participation in forward e-Auctions conducted by any coal company.

Methodology:

• Forward e-Auctions run for 12 months, divided into quarterly bidding.
• Bidders can bid for any or all quarters.
• Bidding conducted online according to schedule.
• Bid price increments defined, with highest bid securing allocation.

Conditions for Dispatch:

• Separate e-Auctions for dispatch by rail and road.
• Minimum bidding quantities specified for each mode.
• Bidders quote bid price per tonne.

Post e-Auction Process:

• Successful bidders notified via email/SMS and on the website.
• EMD amount blocked and transferred to Coal Company.

Financial Coverage and Terms of Payment:

• Successful bidders required to deposit coal value in advance.
• Options for installment payments available.
• BG option for rail supply available for certain quantities.

Make Up Rights:

• Monthly scheduled quantities can vary within a tolerance range.

Refund and Forfeiture:

• Refund of EMD for unsuccessful bidders.
• Forfeiture of EMD/Security Deposit in case of default.

General:

• Coal for own use within the country, not for resale/export.
• All terms subject to force majeure conditions.
• Disputes resolved through arbitration.

Acceptance of Terms & Conditions:

• Bidders must accept terms before participation and before issuance of delivery orders/rail programs.