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Friday, December 2, 2011

Karnataka iron ore auction to fetch INR 8000 crore - Mr Tripathi of MSTC

Friday, Dec02, 2011

Whether it is the Karnataka mining crisis or the coal sector issue where E auction coal was diverted to power or the first of its kind online hair auction, Kolkata based MSTC is always a silent partner of the rescue act for Indian industry.

Mr SK Tripathi CMD reveals his plans about the company to Shine Jacob.

Q - MSTC was on the limelight, when the Supreme Court entrusted you to hold E auction of iron ore lying in Karnataka, after and export and mining ban. How is the process going and what sort of a revenue are you expecting from this?

A - After the ban on export and mining in Karnataka area, the local industry had approached the Supreme Court for a relief and we were entrusted with its E auction to domestic-end users. Our Bangalore office is closely working with 3 member monitoring panel appouinted by Central Empowered Committee for conducting E auction of iron ore in the three districts Bellary, Chitradurga and Tumkur in Karnataka. The court has directed MSTC through CEC to hold E auction of 1.5 million tonne of iron ore per month against a total quantity of 25.88 million tonne. We started the procedure on September 14 and has conducted six auctions so far, with a total quantity of 3.72 million tonne and fetched a revenue of INR 850 crore to the state. Out of the 50-55 people who registered, 40 to 45 succeeeded in getting iron ore. If the present trend continues, the state will be getting a revenue of more than INR 8,000 crore with in the current financial year. As the prices are high, mine owners are happy and the government will get higher duties too.

I believe that this model can be followed in other states like Goa, Jharkhand, Chhatisgarh and Orissa, where there are issues with iron ore mining. It will be of huge savings for the country.

Q- -You are also conducting E auction for Coal India. Recently, the government has diverted E auction coal for the month of October to power sector. How is it going to affect the business of the company?

A - I feel this is a temporary phenomenon and with the improvemnt in the coal availability scenario, CIL will be able to provide coal for E auction. Coal is also required for non-core consumers of coal and they should also not be deprived of their coal for a long time. Through the development, there will be a revenue loss for CIL, as well as MSTC. I belive that things will improve in a couple of weeks and we will be able to resume auction soon.
(sourced Business Standard)

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