GSFC to e-auction doubtful assets

The Gujarat State Finance Corporation (GSFC) has decided e-auction its huge doubtful assets.

For this, the corporation plans to sign a pact with MSTC Ltd, the state-owned enterprise that auctions off scrap and surplus material for its clients.

GSFC has some 700 defunct industrial units seized after the borrowers turned bad. GSFC has been maintaining most these units for over three years at a high cost. Currently, GSFC uses its own website and print media to announce the sale of seized units.

GSFC management believes that MSTC, with established name in e-auctioning, will be able to attract large number of bidders.

"GSFC has decided to get into a tie up with MSTC to sell the idle properties speedily. The access to the MSTC network of e-auctioning will enable us to attract bidders from other states also. We would sign the deal soon," said J P Joshipura, general manager of GSFC.

MSTC would charge GSFC only for the deals that realises. GSFC will pay 3.5-5 per cent of the value of deal. MSTC will auction industrial units based in Ahmedabad and Valsad in initial phase. MSTC will adopt competitive bid method for GSFC units.

MSTC claims it has 250 clients and 5,000 buyers in its fold. MSTC also claims its e-auctioning system to be transparent and faster than physical auctioning. The industrial units with GSFC are from plastic, textile, chemical, pharmaceutical and engineering sectors.