Overview of the MSTC License
Metal Scrap Trade Corporation Limited or MSTC Limited has established itself as a leading public sector facilitator for e-Auction and e-Procurement and a trendsetter for the e-auction segment in the country. MSTC has two major segments of operation, E-Commerce and Trading. MSTC’s e-auction portal helps buyer organisations and tendering authorities float e-tenders on their customised e-tendering platforms. Interested bidders and vendors can participate in these events only after registration with the MSTC. These e-auctions include ferrous and non-ferrous scrap, e-waste, machines and vehicle scraps. Once MSTC obtains customers, it enters into a ‘selling agency’ agreement with the principle. After that, it starts the process of registering the bidders. Advance notice of selling events is sent by e-mail to the registered bidders. Auctions are held on a specified date and time. In some auctions, the bidders have to deposit the pre-bid EMD before the commencement of the bid to become eligible to participate in the bidding process. In most auctions for general scrap items, the EMD amount is paid only by the successful bidders within a stipulated time after the bidding is completed.
Role of MSTC
MSTC was established in 1964 as a regulatory body to deal with ferrous scrap export in the country. In 1973, MSTC became a canalising agent for GOI for importing metal scrap. Presently MSTC has taken the shape of an e-commerce outfit to render the following services to government and private entities
- E-Procurement
- E-Auction/ E-sale
- Retail Software
- Marketing Services
MSTC has played a significant role in developing the iron, steel, ship breaking and other natural resources industry. It is also the regulating agent for the unorganised scrap market. The company has ventured into multiple sectors such as the online sale of oil and gas, online allocation of coal and a bidding platform for exporting and importing petroleum products, sand mining and liquor license and joint ventures in car scrap recycling. MSTC is a nominated agency for all major and minor mineral blocks in states like Assam, Chhattisgarh, Jharkhand, Rajasthan and Uttar Pradesh.
Documents Required for MSTC License
Bidders/buyers and sellers must register with MSTC to use their portal. MSTC follows a two-step registration process and requires physical verification of the documents, which are returned after verification. The documents required by a customer to obtain MSTC licenses are as follows:
- PAN Card (Original & Photocopy)
- Self-Attested GST (wherever applicable)
- Photocopy of Latest Income Tax Return
- Copy of partnership deed/ MoA/ AoA as applicable.
- Purpose of purchase of Scrap(i.e. for own consumption or trading)
- Registration Fee in the form of DD/PO payable at the respective region.
- Signature of the Proprietor / Partner verified by the Bank on their letterhead*
(If the customer is a Proprietorship / Partnership Firm)
- Duly signed copy of Electronic Payment Mandate Form certified by Bank along with one cancelled cheque leaf
- Two coloured passport-size photos of the Proprietor / Partner / Director.
- Notarised Photocopies of Valid Registration Certificates from CPCB and SPCB for Hazardous Waste Items (If applicable)
- Copy of signed e-mail Confirmation Letter received after completing online registration.
- A letter addressed to MSTC stating the serial number of the DSC to be used by the bidder for login and bidding
Note: *If the verification is done on the Customer’s Letter-head, then the full Address of the Branch of the Bank must be mentioned.
For Vendors, the documents needed for registration include:
- Two colour passport photographs
- Notarized copy of PAN Card
- Notarized copy of Sales Tax/Vat Registration Certificate
- Trade License
- Certificate from the Bank in which the seller has an account
Registration Process for MSTC License
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Online Registration A new applicant (buyer or seller) needs to register on the web-based portal of MSTC and obtain a unique user ID. The applicant must possess valid registration certificates from CPCB and SPCBs in advance for hazardous waste items. |
Offline Registration After online registration, a confirmation letter is sent to the applicant. The applicant has to counter-sign a copy of the letter and complete offline registration. MSTC requires the applicant to carry original documents along with their copies for physical verification and to sign the ID card. |
Document verification and fee submission A one-time registration fee has to be submitted at the regional/branch office of MSTC within 30 days of registration. All documents will be verified and ID cards will be issued to successful applicants. |
Types of scraps and goods listed on the MSTC e-auction Portal
Buyers and Sellers of scraps and customs goods can use MSTC e-auction services. The list of items include
- Electrical and electronic items
- Ferrous and Non-ferrous scraps
- Forest produce
- Metals and mine blocks
- Minerals (coal, diamond etc.)
- Petroleum products
- Plant and machinery
- Transport vehicles
- Vessels and containers
- Agricultural produce
- Automobile scraps
How will Enterclimate Assist You?
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All-Inclusive Solutions under One Roof Enterclimate provides all-inclusive licencing and registration assistance for buyers as well as sellers. Contact Enterclimate if you are looking for a hassle-free way to sell or buy the goods or scrap. |
Industry-Leading Guidance Enterclimate consists of a diverse team of legal experts who keep themselves updated with processes and changes in the MSTC Licencing. Focus on your business and leave the challenges to us. |
Swift Support and Guidance Our experts have an excellent record in Customer Support. We are known for our quick response rate and always try to ensure that communication with our clients is a hassle-free experience. |
