On January 26, CEC has taken a decision that NMDC will now offer its iron ore from Donimalai mines in Bellary (Karnataka), through advance e-auctions.
The above decision has been taken, looking at timely evacuation and supply of iron ore to steel mills within a month's time, which is to come into effect from March 8.
NMDC is to inform CEC in advance about the availability of lots for e-auction and is free to decide on the floor price. For lots unsold in two to three e-auctions, CEC would change the floor price.
CEC is to give details on lots size, base price of various grades with an interval of 0.1% Fe variation, grades and quantity of the material, moisture content, % of under size lumps.
It will also finalize the schedule of delivery and payments along with quantity verification process.
“The successful bidders will be required to make full payment of the lots purchased by them at least seven days before the start of the week in which the delivery is due to be made except for the first week when the payment will have to be made four days before the week in which the delivery is to be made,†M K Jiwrajka, member secretary, CEC, said.
The sale price payable by the buyer will be equal to the floor price of the grade of the iron ore supplied plus an amount equal to the percentage by which the sale price offered for the indicative grade is above the floor price of the indicative grade.
The permissible moisture content will be between four and six per cent in case of lumps and six and eight per cent for fines. Whenever the buyer purchases more than one lot in the advance e-auction, the amount payable by the buyer will be based on the weighted average of all the lots purchased by him.
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