MSTC Ltd Nominated for Gold TRQ E-Auction by Indian Government
Filing Summary
MSTC Ltd has been nominated by the Director General of Foreign Trade, Government of India, to conduct e-auctions for Gold Tariff Rate Quota (TRQ) on a single source basis. This nomination is under Rule 194 of the General Financial Rules, 2017. MSTC will provide services for the online administration of TRQ allocation for gold bullion imports. The revenue from this contract will be derived from transaction fees paid by bidders in each e-tender. The agreement remains valid until terminated by either party.
MSTC Ltd has been nominated by the Director General of Foreign Trade, Government of India, to act as the consultancy/service agency for conducting e-auctions of the Gold Tariff Rate Quota (TRQ). This nomination is on a single source basis under Rule 194 of the General Financial Rules, 2017. The nomination was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The nomination entails MSTC providing services for the online administration of the allocation of TRQ for the import of gold bullions and other commodities. The agreement will remain valid until either party decides to terminate it. The revenue generated from this contract will primarily come from transaction fees payable by each bidder before the submission of bids in each e-tender. The exact size of the order or contract cannot be quantified at this stage as it depends on the number of e-auctions conducted and the number of bidders participating in such e-auctions.
The entity awarding the contract is a domestic entity, and the order does not fall within related party transactions. The promoter or promoter group of MSTC does not have any interest in the entity that awarded the contract. MSTC is solely a platform for conducting the e-auction, and the management anticipates a fair volume of business from this engagement.
MSTC Ltd is a government enterprise engaged in providing e-commerce services, including e-auctions and e-procurement. The company focuses on leveraging its technology platform to facilitate various types of auctions and procurement processes for government and private sector clients.