What is a PSU scrap auction marketplace in India?

A digital platform that aggregates live e-auctions from government PSUs (Coal India, NTPC, Railways, SINGARENI, SAIL) selling surplus industrial scrap. Buyers access unified bidding, lot tracking, and logistics coordination instead of monitoring multiple portals. India's PSUs auction ₹800–1,200 crore in scrap annually via TGTS and state e-auction portals.

How much does it cost to start a PSU scrap marketplace in India?

₹35–50 lakh for MVP: Platform tech stack & cloud (₹15–20L), regulatory approvals & PSU partnership IOUs (₹8–10L), logistics partnerships & initial working capital (₹12–20L). Scaling to pan-India operations: ₹1–2 crore in Year 2.

Is a PSU scrap marketplace profitable in India?

Yes. Estimated Year 1 revenue: ₹2–4 crore (conservative 50% market penetration of ₹800Cr PSU auctions at 2–3% commission). By Year 3, ₹15–25 crore with multi-PSU coverage and logistics markup. Gross margin: 60–75%. Break-even: 18–24 months.

What regulations apply to a PSU scrap marketplace in India?

SARFAESI Act 2002 Section 13 (secured asset sales); Securitization & Reconstruction Act 2002; State e-auction portal rules (e.g., TGTS Telangana); GST 18% on service commission; Hazardous Waste Management Rules 2016 for certain scrap; Warehouse/Logistics licensing; DGFT export rules if handling export-grade scrap.

PSU Scrap Auction Marketplace India 2026 — Business Guide

AI SummaryIndia's PSU scrap market worth ₹800–1,200 crore annually remains fragmented across multiple e-auction portals with no unified buyer interface. An aggregation marketplace capturing 2–3% commission on government scrap auctions can reach ₹15–25 crore revenue by Year 3. Timing is right in 2026 as government digitalization accelerates (TGTS, PM GatiShakti) and industrial recycling demand rises due to circular economy mandates. Best pursued by logistics entrepreneurs, scrap dealers scaling to buy-side, or supply-chain software founders.