Thursday, 19 January 2017

MSTC's stall in Vibrant Gujarat Global Summit, 2017

New Initiative of NLC India Limited Saves Rs.460 crore

NLC India Limited, s implementing a coal based power project (3X660) at Ghatampur, Kanpur Dehat, UP through a joint venture company called NUPPL with UPRVUNL at an estimated project cost of RS.17,238crore. The debt component is 70% of the project cost amounting Rs12067 crore.
In order to secure debt component, the company has adopted an innovative method of tendering including reverse auction mechanism (A reverse auction mechanism is an auction approach to procurement/tendering, wherein sellers which meet certain minimum criteria are eligible to submit non-negotiable price bids.
The buyer (typically a utility) then selects winning sellers based on the lowest priced bids first, and signs non-negotiable standard contracts with the winning sellers, incorporating the prices bid by that seller), with the help of M/S MSTC in which all major bankers and financial institutions participated and after the successful tendering method f
Followed, a very competitive rate of 9.35% was secured for an amount of Rs.4,200 crore. Prior to this method, the company resorted to traditional way of tendering and could secure an interest rate of 10.50%.This new method is resulting in a saving to the tune of Rs.460 crore over the tenor of the loan .
The saving secured is expected to continue in getting the balance loan in due course of time .This may reduce the project cost significantly which will reduce the expected level of tariff.


MSTC Limited conducted this unique e-reverse auction amongst banking and financial institutions, with L-1 matching for debt component of this joint venture company  of NLC India Limited obtaining loan against power project of NLC India Limited. This new method is resulting in a saving to the tune of Rs.460 crore over the tenor of the loan for NLC.

Madras Export Processing Zone (MEPZ), E-Auction

MSTC conducted e-auction for finalising the lease rent of 6 plots of Madras Export Processing Zone (MEPZ) in the first week of November, 2016. MSTC could elicit very good response and the plots on offer for lease rent fetched a revenue to the tune of Rs. 759.32 lakhs as against the notified rental income of Rs. 26.56 lakhs which is an increase of 2858.22%. Lease period is for three years which means increased revenue of Rs.21.98 crore apprx. (8575% for the lease period) for MPEZ.

Wednesday, 21 December 2016

Mahindra MSTC Recycling Private Limited, joint venture Company between MSTC and Mahindra Intratrade Limited incorporated for setting up Auto Shredding Plant, on 16th December, 2016 under the Companies Act, 2016.

1st Board meeting of the JV company held on 21st December, 2016 at  Mumbai.

Successful Transaction of M3 Portal has already been started.