Marketing Services

Marketing Department, MSTC Limited is mainly engaged in the business, inter alia, of industrial/other raw materials, project equipment etc. on account of and for interested customer(s) who come to avail of the facilities, expertise and market acquaintance of MSTC, acquired over the years in the trade afore stated. MSTC’s business activities include procurement of industrial/other raw materials, project equipment etc. on Facilitator mode which is to be mutually agreed between MSTC and the interested customers. The said procurement is against 110% BG margin.

(₹ in million)

SCHEME OF PROCUREMENT UNDER 110% BG BACKED BUSINESS MODEL

1. Only limited company can avail the facility of procurement of raw materials, equipments and other items for their business purpose;
2. The value of procurement shall be covered by irrevocable Bank Guarantee (BG) issued by any Scheduled Commercial Bank and strictly as per MSTC format. The value of BG must be for 110% of the procurement value;
3. The BG shall be treated as valid on receipt of SFMS message from MSTC designated banker and on confirmation of BG;
4. Application can be sent in the link given below;
5. Application to mention clearly the quantum of fund as well as the utilization purpose
6. Following documents are to be attached with the application by new customers:-
   1. Memorandum and Articles of Association
   2. Audited Annual Accounts for last 3 completed financial years
   3. Brief report on the Organization's Activities
   4. Details of Directors
   5. Details of items to be procured through MSTC
   6. Income Tax PAN
   7. GST Registration Certificate
   8. Valid Bank limit Sanction Letters
   9. Letter from the Director of the company giving details of:-
      1. Whether there is any case initiated against the party under Section 138 of the NI Act or any other criminal proceedings is pending against the party;
      2. Whether any court case (civil or criminal) is pending between the party and any Public Sector Undertaking/Government Department, if so details thereof;

   The certified hard copies will be asked for whenever required;

7. On successful processing of application a non refundable processing fees of Rs. 5,000/- (Rs. 1000/- for MSME &Agri-sector customers) plus GST will be payable prior to signing of agreement;
8. The agreement shall at MSTC's standard format. The same will be shared on successful processing of application;
9. Charges for availing this raw material procurement facility are as under:
   1. Service charge - 0.10% plus applicable GST per month of credit;
   2. Interest - 10.45% per annum for the current financial year i.e. 2021-22. The rate is subject to revision every year;
10. Initial credit period is for maximum 180 days. The same can be further extended for another 180 days subject to payment of due charges on account of service charges and interest of the past period. However such extension is at sole discretion of MSTC;

Individual proposal value should not be less than Rs. 50 lacs. For MSME & Agri-sector customers the individual proposal value should not be less than Rs. 10 Lacs.

TO APPLY ONLINE CLICK HERE