E-auctions of iron ore in the state of Karnataka, which produces 30 million tons of iron ore per annum, resulted in profits of MSTC- a public sector company to grow by 14% to 25,000 crore in FY 2013.
Since September 2011,when Supreme Court appointed MSTC for e-auction of iron in Karnataka, MSTC sold about 42.23 MnT of the mineral worth Rs 10,000 crore from various mines in the state.
From royalty and other levies, Karnataka's revenue has also grown by 300 crore.
Odisha's revenue gains from e-auctions would be higher as it produces 60-70 million tons of iron ore per annum.
S.K. Tripathi, chairman and managing director of MSTC told a news channel, “an increasing number of commodities are now being traded through the e-auction route, which has contributed to our turnover.
We are ready with the back-end infrastructure in case of Odisha too.
We are awaiting a final nod from the highest levels of the state government and are prepared to roll out the e-auction services for iron ore at the earliest.”
MSTC sold out 24.3 million tons of iron ore in FY 2012-13 worth Rs 5,470 crore as compared to 17.8 million tons worth Rs 4,218 crore in FY 2011-12. Total revenue in 2011-12 stood at 21,751 crore.
The company is hopeful to achieve success in Odisha e-auctions, which is expected to commence soon.
Introduction of e-auctions has brought a high degree of transparency and efficiency domestic iron ore trades.
Leave a Reply