WELCOME TO A PRESENTATION ON 07 02 2012

WELCOME TO A PRESENTATION ON 07. 02. 2012 By s. k. kaul, regional manager mstc ltd. new delhi

ABOUT MSTC… 1964: Started as a regulatory body for export of ferrous scrap 1974: Became a Subsidiary of SAIL 1982: Delinked from SAIL to become an independent company under Ministry of Steel 2002: Awarded Mini-Ratna Category II 2005: Elevated to Mini-Ratna Category I 2007: Upgraded to Schedule ‘B’ Company Winner of 2 time MOU Excellence Award for years 2001 -02 & 2004 -05

MSTC : OFFICE NETWORK The Head Office & Corporate Office at Kolkata Regional Offices at New Delhi, Kolkata, Mumbai and Chennai Branch Offices at Bangalore, Vadodara and Vizag Site Offices at Bhopal, Trichy and Haldia.

Major Segments of the Business…. The business of MSTC can be classified as : (A) e-Commerce e-Auction, e-sale & e-procurement (B) Trade Procurement & Sale of Imported & Domestic material. (A Government of India Mini Ratna Company)

(A) Evolution of e-Commerce Business. . . • Started with selling Scrap from Integrated Steel Plants to optimize availability of indigenous Scrap • Scrap Auction business extended to PSUs, Central/State Govt. Deptt. • In 2002, Fully Computerized e-Auction Portal introduced for the first time in a PSU Coal of Coal India and SCCL was added to the list in 2004 • • Manganese Ore and Ferro Manganese from MOIL were added in 2006 • Iron Ore of NMDC included in 2007 • In 2007, e-Procurement module was introduced (A Government of India Mini Ratna Company)

e-Commerce module…. • The group renders service in the field of disposal of scrap and surplus stores • The list of Principals includes Ministry of Defence, major PSUs like ONGC, BHEL, IOCL, State Road Transport Corporations, State Electricity Boards, etc. • Selling/Procuring bulk raw material for PSUs / Govt. Departments / other Agencies primarily through e-Auction/e-Procurement. • Unlocking Wealth for the Customer by Sale of Scrap

Our Business Associates q Rashtrapati Bhawan q Prime Ministers Office q Ministry of Defence (Army, Navy, Airforce, Ordnance Factories) q Min of Home Affairs (BSF, CRPF, SSB, BRO, ITBP , NSG , CISF Frontier force )etc q Min of Finance (Customs & Central Excise) q Power Sector (BHEL, NTPC, NHPC, Power Grid Corp. , Nuclear Power Corporation , Corp. , Tehri Hydro , Satluj Jal) q Telecom Sector (BSNL, MTNL, ITI) q Oil & Gas Sector (IOCL, HPCL, ONGC, GAIL) q Delhi State Govt. (Govt. of NCT of Delhi/ IPGCL/DTC/Delhi Police/Delhi Jal Board, Hospitals) (A Government of India Mini Ratna Company)

Our Business Associates Cont…. q. State Govt (Electricity Board of UP/Rajasthan/ MP/Haryana/ Chattisgarh/Bihar / Jharkhand/Orissa/Gujrat/Maharastra etc ) q. Coal sector (Coal India Ltd. /SECL, NLC) q. Avionics (AI, AAI, HAL) q. Insurance (National /Oriental /New India Assurance) q. Private Sector (JPA, Alcatel, TATA Communications q. Port trust (Kolkata , Mumbai, Cochin, Kandla) q. Transport companies in the states of Delhi, Maharashtra, Gujarat, Goa, West Bengal, Punjab and Tamil Nadu (A Government of India Mini Ratna Company)

(B) MSTC trades in…… FINISHED &SEMI FINISHED STEEL ITEMS IRON BEARING RAW MATERIALS- HR Coil Slabs, Billets, Wire Rods, Deformed Bars Ferrous Scrap, DR Pellets, DRI, Calibrated Lump Ore, HBI COAL & COKE Anthracite coal, Metallurgical Coke, Thermal Coal NON-FERROUS & OTHERS Copper Scrap, etc MSTC IMPORT / EXPORT BASKET Petroleum and Petrochemical HSD, MS Crude Oil, Furnace Oil EXPORT: Iron Ore, Petroleum Products (A Government of India Mini Ratna Company)

Trade arena… • Purchase and Sale of Industrial Raw HMS, like Coke, LAM Materials Crude. Coal, Coking both from international and domestic sources • Oil Customers include Coal/Steel Industries, Sector, State owned Power companies, etc. (A Government of India Mini Ratna Company)

MSTC INFRASTRUCTURE A state-of-the-art Data Centre at MSTC’s HQ at Kolkata and kept out -of-bound for all except a few designated engineers of System Deptt. Disaster Recovery(DR) Site installed in Mumbai with mirror server effect and connected by a special VPN between Kolkata and Mumbai. MSTC’s e-commerce Division is ISO 9001: 2008 and ISO 27001 -2005 certified and audited periodically by STQC IT Services, Department of Information Technology, Govt. of India. The possibility of tampering of data for bid correction by any bidder or service provider is not permitted as per CVC guidelines. MSTC follows all the security features. 128 bit encryption for Data security is available in MSTC system. MSTC’ web portal is registered under its own name The server is capable of more than 5000 concurrent hits.

MSTC INFRASTRUCTURE Cont… MSTC’s e-commerce system has obtained audit certification from Standardization, Testing and Quality Certification(STQC), an agency of Government of India. STQC tests and audit MSTC’s system periodically. The security parameters are as per the provisions of the security aspects of Information Technology (IT) Act, 2000 and subsequent amendments thereof. MSTC hosted site, network and database are protected as per CERTIn(Computer Emergency Response Team) web server Security guidelines (CISG-2004 -04) E-commerce system has the capability to capture the Audit Trails on ‘Write Once Media’ which meets the latest guidelines of CVC for security features. MSTC ‘s system has a feature of audit trail for each and every user’s activity performed including Server up time and down time log.

E-Waste Disposal

WHAT IS E-WASTE ? Electronic Waste (e-waste) comprises of wastes generated from used electronic devices and house hold appliances which are not fit for their original intended use. E-wastes contain over 1000 different substances many of which are toxic and potentially hazardous to environment and human health.

ITEMS AND THEIR TOXIC COMPONENTS ITEM COMPONENT Refrigerator CFC/HFC/HC, Rubber etc PC and Laptops CRT, batteries, circuit board, copper, fluorescent lamp Television Metal, CRT, Plastic, transformer, circuit board, BFR Washing Machine Rubber, electrical wires, metal and motor etc.

TOXIC COMPONENTS AND THEIR CONSTITENTS COMPONENT CONSTITUENT Printed circuit boards Lead and cadmium Cathode ray tubes (CRTs) Lead oxide and Cd Switches & flat screen monitors Mercury Computer batteries Cadmium Capacitors and transformers PCB Printed circuit boards, plastic casings cable Brominated flame retardant Cable insulation/coating PVC

DANGERS & CHALLENGES Rapidly increasing volume of e-waste Low level of awareness of the hazards of incorrect disposal Widespread e-waste recycling in informal sector using rudimentary techniques leads to severe environmental damage and health hazards Recyclers recover precious metals and improperly dispose off the rest Absence of proper mechanism for Collection of e-waste material and its Disposal

DANGERS & CHALLENGES Cont. . Inefficient recycling processes result in substantial loss of material value Effective recycling processes through technologically sound systems involve initial investment Huge gap between generation & recycling of E-Waste Lack of producer responsibility for take back of products, at the end of its useful life.

ROLE OF MSTC…. MSTC acts as a Selling Agent for disposal of redundant/obsolete scrap and surplus stores etc including e-waste materials on behalf of various ministries/Govt. Depts. , more than 200 PSU’s, State Electricity boards, and other Govt. Departments etc through its e-auction on website : www. mstcecommerce. com/auctionhome Guidelines, Notifications issued by Mo. EF, CPCB, SPCB etc. from time to time are strictly implemented & portal customized accordingly

Steps involved in E-Waste Disposal The buyers and sellers have to register on the website www. mstcecommerce. com/auctionhome for participation. Buyers complete the online registration form and submit documents viz PAN card, VAT registration etc. For buying e-waste material, the buyer has to submit the valid clearance certificate from the Central or State Pollution Control Board. MSTC receives the consolidated list of obsolete/redundant material including e-waste from the Sellers. MSTC schedules the e-auction and publicizes it in various leading newspapers, on its website and through direct mails to all the registered buyers. MSTC Uploads the catalogue on its website. E-waste items/lots are given a particular category wherein the lots are visible on the “Live E-Auction Floor” to only those buyers who have submitted the CPCB/SPCB certificate and can submit their bids.

Steps involved in E-Waste Disposal Contd… After the online bidding process is over, the system compares the highest bid with the reserve price entered into the system by the seller. The Reserve Price cannot be viewed by anyone but the seller with their user ID & Password. After completion of the bidding process, The system compares the highest bid with the reserve price fed into the system. Wherever the highest bid equals or exceeds the reserve price the lots are sold automatically by the system and e-mail is fired to the highest bidder asking them to deposit EMD. On receipt of EMD, MSTC issues Sale Order advising the buyer to submit Balance Sale Value + Duties + Taxes within “X” Days. The EMD is forwarded to Seller. After receipt of Balance Sale Value + Duties + Taxes, MSTC issues Delivery Order and forwards payments to seller for lifting of Materials by the Buyer (Against Photo ID-Card).

e-Auction Registration For Buyers Ongoing Process Constant Updating Direct / Online by Bidder himself Registration Email Address of Bidder Mandatory Self Generated Unique User-ID & Password PAN/Income Tax return/ VAT Certificate/ Bank Certificate Activation Eligibility E-Waste – Valid License of CPCB/SPCB Issue of Photo-ID Card issued by MSTC Confirmation of Activation (Contains Bidder’s Photo & Signature) We also conduct Seminar/Workshops to Train/Educate the Bidders and Register them for e-Auction

E-Auction Bidding Process : Flowchart Hosting of e-auction catalogue showing lot details, terms & cond. And Starting & Closing Time On line Search of specific Item/Principal by Bidder Physical Inspection of material by Bidder Posting of Reserve Price and STA %age by Principal Automatic Display of H-1 Bid / Bid History without Bidders Names (Buyers - Last 10 Bids / Principal - All Bids) Automatic improvements in Bids by Bidders (By Specified Increment / Upto Specified Limit) Actual Bidding by Registered Bidders Piece-meal improvement in Bids by Bidders (Downward Bidding not permitted) Automatic Extension of Closing Time (08 min. gap between Last Bid & Closing Time)

E-Auction Bidding Process : Flowchart Contd… E-Auction closing time displayed separately for each lot If no bid recd during last 08 minutes before closing time the lot closes for bidding E-Auction closes after all the lots close for bidding Complete Bid-History for each lot can be generated Bid sheet can be generated showing lot wise details of the -auction e

Delivery Order Acceptance Letter STA Approval Bid History(Live-Auction) / ((Post Auction) Bid - Sheet Reserve Price Entry Auction Floor/ Auto Bid Auction Catalogue Home Page (Seller) Log In Here

e-Waste Disposal… • MSTC has about 27 registered Buyers for e-Waste material. • Sale of e-waste through MSTC in recent past years 2010 -11 : Rs. 1. 70 Cr. (Yearly) 2011 -12 : Rs. 2. 52 Cr. (upto 30. 09. 2011) (A Government of India Mini Ratna Company)

Major e-Waste Generators…. • Manufacturers of PC, Mobile handset, TV, Game Console. • White Goods i. e. Home Appliances such as Refrigerator, Air Conditioners, Washing Machine, Electrical Oven. • Off late Automobiles equipped with electrical/electronic gazettes become source of e. Waste. • Ships, Aircrafts with modern communication system also add volume to e-Waste items. (A Government of India Mini Ratna Company)

Suggestions In order to have proper management system for ewaste disposal the manufacturers should have system of collection and channelization in place with proper regulatory mechanisms. Collection centers can be created so that e-waste material can be accumulated at one place. All Central & State govt. departments, PSUs and other bulk consumer should channelize their e-waste disposal so as to safeguard and protect the environment. Government can provide incentive to set-up E-waste processing units for quick disposal

Suggestions Contd. It is seen in the Government Deptt. And PSUs that the reserve prices fixed for e-waste material is generally on the higher side. A pragmatic approach is required for fixation of Reserve Price of such Ewaste material. By giving incentives for setting up more units within the same state, movement of material can be avoided and the disposal can be ensured in a environmentally sound process. This will also ensure higher revenue to the state.

THANK YOU