Mines Min asks states to consider SBI Cap, MSTC for auctions

Mines Ministry has asked states to consider engaging SBI Capital -- the investment banking arm of state-run lender SBI -- as transaction advisor and MSTC as e-auction services provider for the upcoming mines auction.
In March this year, the government passed the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2015, which paves the way for states to auction iron ore and non-coal mineral mines.
The Ministry has appointed SBI Capital Markets as the transaction advisor and also to assess the reasonability of rates for the auction process.
Besides, SBI Capital has been engaged by Coal Ministry as transaction advisor for coal block auctions.

Mines Ministry to facilitate and expedite implementation of the provision of MMDR Act, 2015, for instituting a suitable auction mechanism and enabling legislative framework by modification of existing rules, has engaged SBI Capital on a nomination basis, the Ministry said in a notification.
"Mines Ministry has engaged SBI Capital by nomination under Rule 176 of General Financial Rules, 2015 by forming a committee to formulate the terms of reference of transaction advisory and assess the reasonability of rates," it added.

The Ministry advised the states that they can consider engaging SBI Capital, a wholly-owned subsidiary of public sector lender State Bank of India, as a transaction advisor.

It also advised states to consider engaging state-run metal scrap trading company MSTC, which is providing the platform for coal auctions.
The central government has approved the nomination of MSTC as e-auction provider for coal block auctions and Power Sector Development Fund support auctions, the notification said.
"This will save time and ensure transparency, being a government-owned agency having no conflict of interest in auction process," it added.
States can negotiate the fee for transaction advisor and e-auction provider directly with the concerned agency depending on the nature of services to be taken and on the extent of the work load.