MSTC keen to offer e-services

MSTC Ltd, a mini-ratna PSU under Union ministry of steel, has evinced interest to offer its e-auction and e-procurement services for departments and agencies of the Odisha government.

MSTC, which has been offering e-services for a wide gamut of products since 2002, has made a presentation to top state officials. The Central PSU held that e-auction will organize and expand market for various commodities and will make the transaction transparent.

Considering the proposal of MSTC, chief secretary B K Patnaik has urged the industries department to scrutinize the technical details and feasibility of its model in the context of Odisha. Patnaik also asked the MSTC officials to evolve specific models of e-procurement for agricultural, forest and engineering products.

MSTC’s proposal for e-services will be put up for government approval after due vetting of technical details and financial implications by relevant departments.

It may be noted, the state steel & mines department had drafted a proposal for selling the state's entire iron ore produce through the e-auction route. The proposal is under scrutiny of the Chief Minister's office.

Electronic sale of different grades of iron ore is set to rake in incremental revenue of Rs 400 crore per year for the state government.

The auction sale is expected to reflect the actual market prices of iron ore prevailing in the domestic as well as international market. E-auction was being contemplated to bring in more transparency in mineral trading so that existing and potential buyers do not have a reason to complain.

Meanwhile, state controlled miner Odisha Mining Corporation (OMC) has initiated the process of e-auction for chrome ore.

Mining revenue contributed Rs 4,517 crore to the state exchequer in 2011-12 of which iron ore had the lion’s share of nearly 70 per cent.

Odisha was desperately looking to bolster earnings from the mining sector as suspension of scores of mines had raised fears of a dent in revenue collection.

In the April-July period of 2012-13, the state steel & mines department has fallen short of its target of Rs 1,930 crore and managed to mop up Rs 1723.87 crore. The mining revenue collection was, however, 11.02 per cent higher than Rs 1,552.74 crore posted in the comparable period of previous fiscal.