IRCTC Scrap Auction Guide: How to Analyse Lots & Bid Smartly
Unlock Lucrative Opportunities
Government auctions in India present significant opportunities for businesses and individuals to acquire valuable assets ranging from vehicles, real estate, industrial equipment, coal, scrap materials, to mineral rights, often at attractive prices. Understanding the nuances of these auctions can lead to profitable investments and strategic growth.
Introduction – Why IRCTC Scrap Auctions Are a Goldmine for MSMEs
IRCTC conducts regular e-auctions for a wide range of railway scrap—coaches, wagons, stainless steel, ferrous/non-ferrous scrap, electronic components, kitchen equipment and more. For MSMEs, traders, and manufacturing units, these auctions offer:
High-purity, industrial-grade scrap
Transparent digital bidding
Immediate scaling potential
Better margins compared to private scrap markets
But the real differentiator isn’t just participation. The winners are those who analyse lots with precision and bid strategically.
Understanding IRCTC Scrap Auctions
1.1 Types of Scrap Available
IRCTC typically releases scrap categories such as:
Ferrous Scrap – steel, iron plates, rolling stock parts
Non-Ferrous Scrap – aluminium, copper, brass
Rolling Stock Scrap – coach shells, bogies, wheels, axles
Electrical Scrap – batteries, wires, motors
Catering Unit Scrap – kitchen equipment, SS utensils
Un-serviceable Goods – mixed lots
1.2 Auction Structure
Every auction has:
Lot number
Location & depot
Quantity (weight/units)
Inspection date
EMD amount
Start price
Bid increment value
Understanding these elements is essential before making any commercial decision.
How to Analyse IRCTC Scrap Lots Like a Professional
This section positions you as a smart buyer—not a random bidder.
Step 1 – Physical Inspection: The Most Crucial Step
Visit yard on inspection days
Carry measuring tape, magnet, gloves
Check rusting, mix quality, contamination
Confirm whether lot includes hidden or mixed scrap
Identify reusable items that can increase resale value
Tip: Many new bidders skip inspection—this is why they lose money.
Step 2 – Weight, Volume & Recovery Calculation
What to calculate:
Estimated recoverable weight
Percentage of impurities
Cutting / Loading loss %
Transport shrinkage
Example:
If IRCTC shows 10 MT, the actual usable weight may be ~8.5–9 MT after deductions.
Step 3 – Market Rate Benchmarking
Always compare the scrap type with:
Local scrap mandi price
Nearest steel furnace consumption rate
Copper/Aluminium LME-trend linkage
Previous IRCTC auction closing rates
Benchmark sources: Mandi, WhatsApp trade groups, traders’ networks, transporters, and scrap brokers.
Step 4 – Location Advantage & Transport Cost Analysis
Calculate the landed cost:
(Bid price + GST + loading + labour + transport + unloading + cutting) = Final Cost
Common mistake: Ignoring hidden charges like
Weighbridge fees
Gate pass costs
Vehicle detention charges
Step 5 – Risk Assessment
Ask yourself:
Is the scrap mixed?
Does the lot include hazardous items?
Does IRCTC mention “as is where is”?
How much resale time will it take?
Will this cashflow block other opportunities?
Smart bidders manage risks, not just bids.
Smart Bidding Strategies to Win IRCTC Scrap Auctions
Strategy 1 – Avoid Emotional Bidding
Never bid because a competitor is pushing the price up.
Follow your calculated limit.Strategy 2 – Have 3 Pricing Levels
Ideal price – based on your margin plan
Stretch price – if the market is hot
Maximum exit price – never cross this
Strategy 3 – Enter Late, But With Intent
IRCTC auctions work like dynamic bidding.
Smart bidders generally:
Monitor during early phase
Enter during last 3–5 minutes
Keep margin for 3–4 bids
Track competitor usernames
Strategy 4 – Track Competitor Behaviour
Experienced bidders can identify patterns:
Some bidders push prices early
Some wait until last 1 minute
Some place psychological bids like round figures (₹1,00,000 → ₹1,11,111)
Understanding this gives you leverage in the final moments.
Strategy 5 – Bid Across Multiple Lots
Diversify risk.
Even if you lose 3 auctions and win 1 at the right price, you win overall.Strategy 6 – Analyse Previous Auction Results
Study the closing prices of the same scrap type over the last 3–4 months.
This tells you:
Price trend
Competitor demand
Recovery potential
Seasonal fluctuations
Documentation, Compliance & Payment Cycle
EMD Submission
Without EMD, bidding is locked.
Make sure funds are ready.
Payment Timeline
After winning the bid, payment is to be made within the stipulated timeline, usually 7–10 days.
Delivery Order
Once payment is done, DO gets generated.
Lifting Timeline
Scrap must be lifted within the given time, usually 10–20 days depending on lot type.
Penalties
Delay = penalty per day
Excess delay = forfeiture of EMDAlways calculate carrying cost before bidding.
Most Common Mistakes New Bidders Make
No physical inspection
Overconfidence in metal rate
Not calculating transport cost
Ignoring impurities
Overbidding due to competition
Failing to maintain working capital
Not lifting scrap on time
Avoid these to protect your margin.
Strategic Insight
Strategic Foundations: Delve into the core principles that underpin successful tendering, providing a strategic foundation for all subsequent stages.
Initiation to Award: Gain clarity on the overarching objectives, key decision points, and strategic considerations from the initiation of the process to the final award stage.
Risk Assessment: Understand how a strategic approach involves a thorough risk assessment, enabling organizations to proactively address potential challenges.
End-to-End Perspective
Holistic View: Explore the tendering process from an end-to-end perspective, ensuring a holistic understanding of how each phase contributes to the overall success of procurement.
Interconnected Phases: Examine the interconnected nature of initiation, planning, preparation, evaluation, and award, recognizing the dependencies that define a seamless procurement journey.
Strategic Decision-Making: Emphasize the strategic decision-making required at each stage, emphasizing the impact on subsequent phases.
Navigating Complexity
Clear Navigation Strategies: Uncover strategies for navigating the complexities of the tendering process, offering a clear roadmap for effective decision-making.
Communication Excellence: Highlight the role of effective communication in simplifying complex procedures, ensuring clarity for all stakeholders involved.
Guidance for All: Tailor content to be accessible for both seasoned professionals, providing strategic insights, and newcomers, offering foundational knowledge to demystify the process.
Breaking Down the Tendering Process
Navigate the tendering process seamlessly with our in-depth guide, breaking down the journey into distinct stages. Explore a step-by-step breakdown, delve into the intricacies of initiation, planning, preparation, and unravel the critical evaluation and award stages.
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Step-by-Step Breakdown
Comprehensive Overview: Dive into a comprehensive breakdown, offering a step-by-step guide to the entire tendering process.
Clarity in Action: Experience clarity as we dissect each stage, demystifying the complexities and providing a roadmap for successful navigation.
Strategic Insights: Gain strategic insights at each step, empowering you with the knowledge needed to make informed decisions.
- Feature: Delve into a comprehensive breakdown that leaves no aspect of the tendering process untouched.
- Significance: Ensures a thorough exploration, providing readers with a complete understanding of the intricacies involved in tendering.
- Feature: Experience clarity in action as each stage is dissected, unraveling complexities for enhanced understanding.
- Significance: Visual clarity ensures that readers can grasp the tendering journey with precision, facilitating effective decision-making.
Feature: Gain strategic insights at every step, empowering readers to make informed decisions.
Significance: Provides readers with the knowledge and strategic acumen needed to navigate the tendering process with confidence and efficacy.
Feature: The breakdown offers a holistic understanding, connecting the dots between each stage for a seamless procurement journey.
Significance: Ensures that readers comprehend how each stage contributes to the overall success of the tendering process.
Feature: The chapter is crafted with an accessible learning approach suitable for newcomers and seasoned professionals alike.
Significance: Fosters an inclusive learning environment, making the intricacies of tendering accessible to a diverse audience.
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