MSTC Registration

Eligibility Requirements to Obtain an MSTC License for Scrap

The key eligibility requirements to obtain an MSTC license for scrap are as follows:

• The entity must be legally registered under the Companies Act, 2013.
• The entity must hold an active current bank account to facilitate EMD payments & refunds.
• The entity must possess a class 3 DSC of the authorized signatory.
• The entity must possess sufficient liquidity to deposit the Earnest Money Deposit.
• The entity must hold the necessary industrial licenses, as applicable.
• The entity must possess a authorized vehicle scrapping facility license from MoRTH and CPCB (Activity-specific).
• The directors must not be debarred, blacklisted, or under any CBI/ ED/ SFIO investigation.
• The entity is not mandatorily required to have a fixed minimum net worth.

Who Can Apply for an MSTC License for Scrap?

The applicants eligible to apply for an MSTC license for scrap are as follows:

• Individual buyers having a valid PAN card.
• Registered companies, firms, proprietorships, and partnerships.
• Government organizations for procurement and disposal.
• Micro, small, and medium-sized enterprises (MSMEs).
• Coal traders and dealers.
• Banks and financial institutions.

Step-by-Step Procedure to Obtain MSTC Registration Online

The step-by-step procedure to obtain MSTC registration online in India is as follows:

1. Step 1: Initial Consultation & Eligibility Check
   The first step begins with the initial consultation and eligibility check to determine the specific auction type, business model, and product category, as applicable.


2. Step 2: Document Collection & Vetting
   The next step is to collect and vet all mandatory digital documents in the MSTC-acceptable format with zero rejections.


3. Step 3: Class-3 DSC Procurement
   The next step is to obtain a class-3 DSC to securely log in and submit digital bids on the official website.


4. Step 4: Online Registration on MSTC Portal
   In the next step, it is mandatory to create a buyer/ seller account and file an online application on the MSTC portal, accompanied by payment of the prescribed registration fees.


5. Step 5: MSTC Verification & Approval
   Next, the MSTC verifies all the KYC documents, runs CIBIL and blacklist checks, and issues login credentials with a unique MSTC ID.


6. Step 6: Auction Model Activation
   Upon receiving approval, it is mandatory to request activation of the specific e-auction categories or models in which the entities wish to participate.


7. Step 7: Training, Mock Bidding & Go-Live
   Lastly, the entities are authorized to access the e-learning and training materials and start participating in mock bidding to better understand the live bidding interface before placing real bids.

Types of MSTC Auctions

The different types of MSTC auctions most suitable for your business are as follows:

• Forward (Sell) Auction: A forward (sell) auction is a type of MSTC service primarily designed for governments, PSUs, and private enterprises intending to sell their surplus inventory, including obsolete machinery and non-ferrous scraps. It is popularly known as a scrap and surplus disposal auction.
• Reverse (Buy) Auction: A reverse (buy) auction is a type of MSTC auction that enables procurement departments to drive down purchasing costs through a competitive bid against a target price. It is known as an electronic reverse auction commonly utilised for e-procurement.
• e-Procurement & Tenders: e-Procurement services are designed to provide customized, transparent and secure e-tendering & procurement platforms for various government departments and PSUs.
• Vehicle Scrappage Auction: Vehicle scrappage services are among the most common MSTC auction services, facilitating the easy disposal and recycling of End-of-Life vehicles at registered Vehicle Scrapping Facilities/RVSFs.
• Coal & Mineral Auction: Coal & mineral auction is a primary platform that ensures allocation of commercial coal blocks, iron ore, and other minerals on behalf of Coal India Limited and other mining organizations.
• NPA/ Bank Auction: An NPA/ bank auction is a type of MSTC auction that facilitates the liquidation of non-performing assets and the repossession of properties for multiple banks and asset reconstruction companies (ARCs).
• Agri-Commodity Auction: Agri-commodity auction, commonly known as e-RaKAM, is a kind of forward auction that facilitates bulk sale, procurement, and liquidation of agricultural products.
• Land & Real Estate Auction: Land & real estate auctions are widely conducted to facilitate transparent lease, sale, or development of immovable properties, including land, buildings, and private commercial properties.