Government-owned e-commerce service provider MSTC Ltd announced on Thursday (February 26, 2026) that it has become the L-1 bidder for a tender hosted by Coal India Limited on the GEM portal. According to reports from CNBC TV18, the tender is for the appointment of an external service provider to conduct linkage auctions for the non-regulated sector (NRS) for a period of three years. Under the agreement, MSTC Ltd will provide the full range of services related to NRS linkage auctions, including conducting auctions and executing agreements through the MSTC platform. As per The Economic Times, MSTC will be responsible for managing the end-to-end auction process for Coal India's NRS Linkage Auctions, including comprehensive services from auction conduction to agreement execution, all facilitated through MSTC's digital platform.
As reported by CNBC TV18, the consideration amount or size of the contract is not quantified at this stage. The order has been awarded by domestic entity Coal India and the contract is valid for three years. MSTC stated that neither its promoter, promoter group, nor group companies have any interest in Coal India, and the contract does not fall under related party transactions. According to The Economic Times, the primary concern highlighted is the unquantified financial consideration for the contract, which leaves investors uncertain about the deal's immediate economic contribution. The three-year tenure provides substantial revenue visibility for MSTC, though formal award and signing of the definitive agreement with Coal India Limited remains pending.
According to CNBC TV18, shares of MSTC Ltd ended at ₹451, down by ₹3, or 0.66%, on the BSE on February 26. The stock movement occurred following the announcement of the Coal India tender award. The stock's decline reflects investor uncertainty about the contract's financial value and execution timeline.
This contract represents MSTC's continued engagement with Coal India, building on its previous two-year contract to provide e-auction services for CIL's coal and coal products. As reported by The Economic Times, MSTC operates in a competitive landscape for e-auction and e-procurement services, with its primary competitor being mjunction services, a venture by SAIL and Tata Steel. MSTC Limited, a Government of India enterprise under the Ministry of Steel, has a long history in e-commerce and e-auction services, dating back to its incorporation in 1964, and began its journey in coal auctions in 2004. The company's established platform and expertise in government asset disposals positions it well for managing complex NRS linkage auctions under policies such as the 'Revised SHAKTI Policy 2025'.
As reported by CNBC TV18, last year in November, Bombay Burmah Trading Corporation said it had terminated its agreement with MSTC Limited. The agreement, which enabled MSTC to act as a selling agent for the company's immovable properties, land, etc via e-auctions, has been terminated with effect from November 18. Bombay Burmah decided to conclude the agreement due to an unsuccessful online bidding process, which was 'inconsistent with the corporation's strategies', and clarified that the termination does not have any material impact on its operations.
