MSTC conducts auctions worth 25k cr in FY13

 KOLKATA: MSTC Limited, the country's largest e-commerce company in the public sector, saw a 14% jump in the business transacted through its e-auction services to 25,000 crore in FY13, buoyed by its success of iron auction in Karnataka.

With Odisha inching closer towards initiating e-auction of iron ore, the company is hopeful of replicating its success there too.

Compared to FY12 when it transacted business worth 21,751 crore, MSTC sold higher amounts of iron ore in FY13 through its e-auction platform. In 2012-13, it sold some 24.3 million tonnes of the mineral worth nearly 5,470 crore. This represented a marked increase since 2011-12 when it sold some 17.8 mt ore through its auction platform for 4,218 crore.

"An increasing number of commodities are now being traded through the e-auction route, which has contributed to our turnover. We are ready with the back-end infrastructure in case of Odisha too. We are awaiting a final nod from the highest levels of the state government and are prepared to roll out the e-auction services for iron ore at the earliest," said SK Tripathi, chairman and managing director of MSTC.

Introduction of e-auction has brought about a higher degree of transparency and efficiency in the domestic iron ore trade. Since September 2011, when the Supreme Court appointed MSTC for the e-auction, some 42.23 mt of iron ore worth nearly 10,000 crore has been sold from various mines in Karnataka. The state's revenues from royalty and other levies have also grown by 300 crore.

"While Karnataka produces around 30 mt of iron ore per annum, Odisha produces close to 60-70 mt and hence its revenue gains are likely to be substantially higher due to introduction of e-auction," a mining industry source pointed out.