Overview of MSTC License for Scrap
MSTC was initially incorporated as the Metal Scrap Trade Corporation Limited. It was established under the Companies Act, 1956, on 9th September 1964 at Kolkata. It got a certificate for commencement of business on 12th April 1965 by the Registrar of Companies. Later on, its name changed to MSTC Limited and a fresh certificate of incorporation was issued by the Registrar of Companies on 9th November 1994.
The MSTC was incorporated to deal with the export of ferrous scrap. On 22nd August 1973, MSTC became a subsidiary to SAIL to act as an agent of the Government of India for the import of metal scrap. Then on 21st May 1982, MSTC became an independent company of the Government of India. Earlier it was a canalising agent of the Government of India and was mainly engaged in the import of metal scrap. But after de-canalisation, it emerged as a multi-product and a multi-functional organisation.
A bidder needs to obtain MSTC License. The license or registration is mandatory. While filling out such a form, the buyer has to accept the General Terms and Conditions (GTC) and Buyer Specific Terms & Conditions (BSTC).
The registered office and corporate office of MSTC Limited are in Calcutta, and regional offices in Calcutta, Delhi, Chennai and Mumbai. The MSTC also has branches in Bangalore, Vizag, Bhopal, Vadodara, Trichy and Surat.
Types of Scrap under the MSTC Limited
There are many types of scrap and waste that are dealt with under the MSTC Limited for e-auction. Some of such scraps and wastes are:
- Non-ferrous scrap
- Iron pellets
- Electronic waste
- Ferrous scrap
- Machinery scrap
- Hazardous waste
- MS Barrels
- Rough Diamonds
- Forest product and Timber
Operational Divisions of the MSTC Limited
The MSTC Limited has two main operational divisions:
1. Marketing Division
The Marketing Division largely focuses on importing and exporting Carbon Steel Melting Scrap and also the import of Steel, Coal, Coke, and other non-traditional items such as SKO, Non-Ferrous and Ferro-alloy items.
2. Selling Agency Division
The Selling Agency Division focuses on the disposal of ferrous and miscellaneous scrap from the steel plants and disposal of scrap and used stores, rejected wastes, etc. The surplus items from more than 150 Public Sectors.
The Management Service Division also provides operational divisions feedback on market research.
Features of the MSTC Limited
The unique features of the MSTC Limited are as follows:
- Permanent Registration of Buyers
- Ensures that the information of events of sale is made known
- The customers are not provided unnecessary information, and they get the information on the sale of items of their interest.
- Before the start of the auction, the floor price or the reserve price is published by the stockholder.
- The automatic sale intimation letter is issued when the highest price exceeds the floor price or reserve price.
- There is no manual intervention in such a process to ensure transparency.
- If no bid is received for a specified period of time, then the auction continues beyond the stipulated closing hours.
Documents required for MSTC License
The documents required for obtaining the MSTC license or registration are the following:
- Original and Photocopy of Income Tax PAN Card
- Photocopy of Latest Income Tax Return
- Photocopy of Sales Tax Registration Certificate (Central and State)
- Two passport size-coloured photographs of the Proprietor, Partner or Director
- Photocopy of Registration Certificate from Central and State Pollution Control Boards for Hazardous Waste Items.
- The Bank’s Letter Head with the verified signature of the Proprietor or Partner.
- Copy of Confirmation letter received from the MSTC.
- In the case of partnership firms, the partnership deed.
The Procedure for obtaining the MSTC License
The followings are the necessary steps in pursuance to register at MSTC or to obtain a license:
- The bidder must register himself with MSTC Limited.
- The bidder has to accept the General Terms and Conditions
- The bidder has to accept the Buyer Terms and Conditions
- The bidder has to provide all the valid information in the registration form
- The bidder has to enter all correct details related to the company, such as name, GSTIN and Address.
- The bidder has to pay the requisite fee through NEFT/RTGS or an Online payment method.
The GSTIN is mandatory before applying for the MSTC License. The DSC, i.e., Digital Signing Certificate, is also required during the MSTC registration or the process of obtaining the MSTC License.
The MSTC Limited has the right to call the bidder for any additional documents whenever needed, and the bidder is obliged to submit the same documents.
E-Auction Services by the MSTC Limited
Currently, the MSTC sells scrap, obsolete stores, spares, or capital equipment worth at least Rs. 2,000 crores per year. It also sells coal of the subsidiaries of the Coal India Limited for around 1 million tonnes per year. And it also sells diamonds on behalf of NMDC. The MSTC follows the below-mentioned modes for this purpose:
- Select a number of items on auction that can be offered on a regular and sustained basis.
- Open the permanent registration option for the buyers of the items.
- Issues advance notice of selling events to the registered buyers/customers.
- Held auction on the pre-announced date and time.
Corpbiz Assistance in obtaining the MSTC License for scrap
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Frequently Asked Questions
The MSTC stands for the Metal Scrap Trade Corporation (Limited).
The MSTC has demonstrated the new initiatives with a strong belief in new venture investments and forming positive and productive collaborations with the International, National, Regional and Local Governments. The following are the initiatives taken by the MSTC:
- The E-commerce in mineral products such as Iron Ore, imported thermal coal, chrome, manganese ore, etc.
- E-commerce in Agricultural and Forest products
- An Auto-shredding plant for supply of shredded scrap to various secondary steel industries.
The MSTC Registration is done through online mode.
The Post Bid Security Deposit has to be submitted by the bidder. If the bidder fails to pay the post-bid security deposit, then his registration will be suspended for a period of at least 6 months from participation in any e-auction and disposal of sales.
The MSTC Limited has the following two major segments of its business:
The one who has registered as a buyer of scrap and others are eligible to participate in e-auction.
Any Indian buyer, such as an individual, partnership firm, company, etc., can obtain the MSTC License.