With various Delhi Government departments facing difficulty in disposal of their surplus, obsolete and unserviceable articles, the Delhi Cabinet on Monday decided to engage Metal and Scrap Trading Corporation Ltd. (MSTC) to establish a centralised mechanism for disposing of such material through e-auction on a single source basis.

Delhi Chief Minister Sheila Dikshit, who chaired the meeting of the Cabinet, said MSTC Ltd. has agreed to provide this service to all departments under the Delhi Government. It has also assured that it would strive hard to get the best prices for the scrap material lying in different sites.

Ms. Dikshit said the Finance Department has also been authorised to enter into an agreement with MSTC Ltd. on account of e-auction of surplus, obsolete or unserviceable articles and the Corporation would charge a service fee of 2.75 per cent. In case the disposal amount exceeds Rs.80 crore in a financial year, it has been agreed that the service charge would be reduced to 2.50 per cent.

The new mechanism has been designed to ensure systematic, fast and transparent disposal of such condemned articles which in many cases can be seen occupying precious office space. Besides, the centralised disposal is expected to help in getting better bargains for the Delhi Government as the isolated disposal by different departments was not fetching the desirable price for the sold goods.

The Delhi Cabinet has also decided to recommend to the Lieutenant-Governor prorogation of the Budget Session of the Delhi Assembly which had begun on March15 with his address and was adjourned sine die on April 1. The Budget for the year 2010-11 was presented during this session on March 22 and was passed by the House on March 29.

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