You are here » Home » Companies » Company Overview » NMDC Ltd


BSE: 526371 Sector: Metals & Mining
NSE: NMDC ISIN Code: INE584A01023
BSE 00:00 | 22 Sep 144.65 6.55






NSE 00:00 | 22 Sep 144.60 6.50






OPEN 138.10
VOLUME 1421098
52-Week high 213.15
52-Week low 75.60
P/E 4.76
Mkt Cap.(Rs cr) 42,391
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 138.10
CLOSE 138.10
VOLUME 1421098
52-Week high 213.15
52-Week low 75.60
P/E 4.76
Mkt Cap.(Rs cr) 42,391
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

NMDC Ltd. (NMDC) - Director Report

Company director report

Dear Members

Your Directors are pleased to present the 62nd Annual Report on the performance of yourCompany together with the Audit Report and Financial Statements for the year ended 31stMarch 2020 and the Report thereon by the Comptroller and Auditor General of India.


During the year under review the Company has recorded turnover of Rs.11699 croresachieved Profit Before Tax (PBT) of Rs. 6123 crores and achieved Profit after Tax (PAT)of Rs.3610 crores.

The major performance highlights are summarized as under:-

• The company achieved production of 31.49 MT and sales of 31.51 MT.

• Turnover for the year under review was Rs.11699 crores as against Rs.12153crores in the previous financial year 2018-2019 - a decrease of 3.74%.

• Profit before tax (PBT) from continuing operations was Rs.6123 crores comparedto Rs. 7199 crores in the previous financial year 2018-2019 - a decrease of 14.95 %.

• Profit after tax (PAT) was Rs.3610 crores compared to Rs.4642 crores in theprevious financial year 2018-19 - a decrease of 22.23%.

• Net worth of the Company stood at Rs.27534 crores as on 31.03.2020 - 6.10%higher than the previous financial year 2018-2019.

• Due to Covid-19 pandemic production was affected by 10 LT loss of sale volumeof around 5.5 LT loss of sale revenue of around Rs.219 crore and PBT of Rs.120 crore.

• The Company declared an Interim Dividend of Rs.5.29 per share for FY 2019-2020.

• Capital expenditure of Rs. 2490.99 crore has been incurred during the yearunder review.

• Under the 'Vivad Se Vishwas' scheme for settlement of pending disputes anamount of Rs.981 crore has been paid in full settlement of the disputes.

• Ministry of Steel Government of India has sold 80582119 (2.63%) equityshares @ Rs.114.72 per share and raised an aggregate net amount of Rs. 924.44 crores.

• Extension of Bailadila Iron Ore Mining Leases

- All the five NMDC Iron ore Mining leases are extended for further period of 20 yearsunder Rule (3) of Mineral (Mining by Government Company) Rules 2015.

• Coal Blocks allocation under Section-5 of the Coal Mines (Special Provision)Act 2015

- Ministry of Coal has declared NMDC as successful allottee of Tokisud North Coal Mine(Non Coking Coal) & Rohne Coal Mine (Coking Coal).


Government of Karnataka issued letter no. CI 78 MMM 2016 dated 2.11.2018 grantingextension of ML no.2396 in respect of Donimalai for 20 years from 4.11.2018 to 3.11.2038as per the provision of the Mineral (Mining by Government Company) Rules 2015. Howeverit imposed a condition of 'payment of an amount 80% of the average sale value as publishedby IBM from time to time on despatch of iron ore being payable along with the royalty andall other applicable taxes'.

The impact of the said additional condition makes NMDC's mining operation at Donimalaiunviable the matter was internally discussed and also discussed at the Board level. Legalopinions were sought from Attorney General for India Shri KK Venugopal and Shri BPAcharya Sr. Advocate and former Advocate General of the State of Karnataka. Both haveopined that the condition being imposed by the Government of Karnataka is without theauthority of law.

The matter was taken up with the Government of Karnataka at various levels includingthe Chief Minister of the State by CMD. In spite of continuous follow-up no positiveresponse has come from the Government of Karnataka. Pending the decision on therepresentation by the Karnataka Govt. the operations have been temporarily suspended. Inthe circumstances NMDC was left with no other remedy than approaching the Hon'ble HighCourt of Karnataka by filing a Writ Petition; and as directed the WP No. 53514 of 2018was filed on 29.11.2018.

After hearing the arguments of both the parties the Division Bench of Hon'ble HighCourt of Karnataka on 26-02-2019 reserved the matter for judgment. The Division Bench ofthe Hon'ble High Court of Karnataka Bangalore pronounced the judgement on 10.07.2019.

The operative portion of the Order is as under

i. Writ Petition is allowed;

ii. The condition imposed to levy premium equivalent to 80% of average sale price ofiron ore published by the Indian Bureau of Mines while extending the period of lease videCommunication/Order No.CI78 MMM 2016 dated 02.11.2018 passed by the Secretary Departmentof Commerce & Industries Govt. of Karnataka as amended by Corrigendum No.CI 78MMM2016 dated 15.11.2018 and intimating the same through the letter No.DMG/MLS/ML-2396/2018-19/6360 dated 23.11.2018 passed by the Director Department of Mines &Geology Bengaluru is set aside.

No Costs.

The Company addressed a letter to the Chief Secretary to Government of Karnataka &Hon'ble Chief Minister of Karnataka requesting them to intervene and direct the officialsconcerned to execute Mining lease deed extension of Donimalai Iron Ore Mine in complianceof the judgement of Hon'ble High Court of Karnataka dated. 10-07-2019. The Government ofKarnataka issued a letter withdrawing the approval of extension of mine lease period by 20years accorded vide letter No. CI 78 MMM 2016 dated: 12.11.2018 and Corrigendum dated:15.11.2018 immediately and auction the said block ML. No. 2396.

Aggrieved by the above withdrawal letter dt. 17.08.2019 NMDC filed RevisionApplication before the Hon'ble Mines Tribunal Ministry of Mines New Delhi challengingthe Order/Letter No. CI 78 MMM 2016 dated 17.8.2019 issued by Govt. of Karnatakawithdrawing the extension of Mining Lease No.2396 of Donimalai Iron Ore Mine grantedearlier vide its orders dated 02.11.2018 /15.11.2018 for a period of 20 years w.e.f.04.11.2018 to 03.11.2038.

The Hon'ble Mines Tribunal issued letter no. 13/02/2019/ RC-I dated 20.08.2019 to bothparties NMDC & GoK fixing the hearing on 21.08.2019. Despite the letter dt. 20.08.2019issued by Revisionary Authority & Joint Secretary Ministry of Mines informingGovernment of Karnataka that NMDC had filed a Revision Petition under Section 30 of MMDRAct 1957 ( Amended Act 2015) and fixing of hearing in the matter on 21.08.2019 Governmentof Karnataka issued Notification & NIT dated. 20.08.2019 for auction of Donimalai Ironore mine ML 2396.

NMDC made submissions before the RA & JS Ministry of Mines on 21-08-2019 and afterthe submissions made by NMDC Hon'ble Mines Tribunal ordered as under:

"Accordingly the impugned order dated 17.8.2019 and any consequent action thereonare stayed"

In the meanwhile Ministry of Mines Government of India issued notificationsubstituting the word "shall" in place of word "may" in the Sub Rule 2of Rule 3 and Sub Rule 3 of Rule 4 of Mineral (Mining by Government company) Rules 2015.In view of the Notification issued by Ministry of Mines GoI substituting the word"may" with "shall" in Mineral (Mining by Government Company) Rules2015 CMD NMDC addressed letters to Hon'ble Chief Minister of Karnataka requesting forexecution of Mining Lease deed of Donimalai Mines ML No.2396 at the earliest to avoidfurther Revenue loss to GoI GoK and also for ensuring uninterrupted Iron Ore supplies tothe Steel Industry. However there is no action from Govt. of Karnataka till date.

Government of Karnataka is yet to file its Counter before the Hon'ble Mines Tribunal.Hon'ble Mines Tribunal informed all parties that the hearing in the RA application filedby NMDC will be held on 26.02.2020. However later the same was postponed to 04.03.2020.During the hearing held before Mines Tribunal on 04.03.2020 the representative ofGovernment of Karnataka sought adjournment of hearing to 24.03.2020 by informing theTribunal that the Ld. Addl. Advocate General of State of Karnataka would be appearing onbehalf of State of Karnataka and also filing its counter.

Impact of the Hon'ble Supreme Court of India Judgement with reference to the WritPetition (Civil) No.114/2014 dated 02.08.2017

(i) The Company has been legally advised that there is no impact of the Hon'ble SupremeCourt of India Judgement with reference to the Writ Petition (Civil) No.114/2014 dated02.08.2017 on NMDC. However in case it is found applicable to NMDC at a later date itmay impact the profits of the Company. Meanwhile the Bailadila Projects of NMDC havereceived the Show Cause Notices dated 31.07.2018 from District Collector Dantewada as towhy NMDC should not be asked to deposit an amount of Rs.7241.35 crores as compensation ascalculated by Collector based on the above judgement. NMDC has been asked to submit itsresponse by 31.08.2018. As per the legal opinion received the above compensation is notapplicable to NMDC and hence NMDC will seek legal recourse and contest before theCollector Dantewada and other appropriate authorities. The company has contested the ShowCause Notice with District Collector South Bastar Dantewada.

(ii) On 26.09.2019 State Government issued revised show cause notices mentioningreassessed penalties for an amount of Rs. 1623.44 Crores. In this regard once again NMDCLtd. did not accept the penalties imposed by the revised show cause notices.

(iii) Collector-Dantewada issued final demand notices on 15.11.2019 for an amount ofRs. 1390.03 Crores and Rs. 233.41 Crores towards EC Capacity violation and proposedproduction violation as per approved Mining Plan/Scheme respectively i.e. total Rs.1623.44 Crores.

(a) NMDC deposited an amount of Rs. 600 Crores on 10.12.2019 under protest to theChhattisgarh State Govt.

(b) NMDC filed two Writ Petitions (Civil) being No.WPC/612/2020 and WPC/616/2020challenging validity of demand notices dated 15/11/2019 on the allegation of extraction ofiron ore in excess to the environmental clearance capacity during 2000-2017 have beenfiled at Bilaspur High Court C.G. on 22.01.2020. The following reliefs have been soughtfrom the Hon'ble High Court -

• to issue a writ of certiorari or any other appropriate writ order or directiondeclaring the levy of penalty and compensation vide impugned demand notice dated15-11-2019 as illegal without jurisdiction and voilative of Article 19 (1) (g) andArticle 246 of the Constitution of India.

• to allow the present writ petition by setting aside the impugned notice dated15/11/2019 for demand of penalty and compensation towards excess production over theEnvironment Clearance Capacities.

• any other relief as deem fit and proper by Hon'ble High Court in the facts andcircumstances of the petition may kindly be passed.

(c) When the matter was listed for hearing on 19.2.2020 the Hon'ble Court afterhearing both counsels directed as under:-

• As prayed list both the cases on 12th March 2020.

• Considering the fact that the petitioner has already deposited more than 600crore rupees pursuant to the demand notice made no coercive step further shall be takenagainst the petitioner till 12th March 2020.

• The respondents are directed to produce the statistics as regards the productionof the petitioner exceeding the capacity on 12 March 2020.

(iv) A revision application No. 138102/2020 challenging validity of demand noticesdated 15/11/2019 on the allegation of extraction of iron ore in excess to the proposedproduction quantity as per approved Mining Plan/Scheme during 2000-2017 has been filed atMines Tribunal Ministry of Mines Govt. of India New Delhi on 24.01.2020. The followingprayers have been made in the revision application -

• to set aside the demand of penalties towards the alleged excess productionabove the proposed production in the approved Mining Plan/Scheme since the same iswithout jurisdiction illegal arbitrary violative of principles of natural justice andultravires the provisions of MMDR Act - 1957;

• pass such other orders as Hon'ble Tribunal deems fit under the facts andcircumstances of the case in the interest of justice and in the public interest.

As you are aware in the month of February 2020 Covid-19 Pandemic developed rapidlyinto a global crisis forcing governments to enforce lockdowns of economic activity. Theimpact of Covid in NMDC and steps taken in this regard are summarized as under:-

i) Production:-

In the financial year (FY-2019-20) the impact of Covid-19 on production of iron ore inNMDC was for the period from 22.03.2020 to 31.03.2020 and it affected production of 10LTof ore from Bailadila sector.

ii) Commercial:-

The GOI had enforced country-wide lockdown which led to shutdown of economic activitiesfrom 24th March 2020. Even though steel & related raw materials were classified asessential services but due to the stoppage of production at mines restriction onmovement of labour goods and services lesser availability of rakes and closure ofsecondary steel units. Sales of iron ore affected to the tune of around 5.5-6 Lakh T fromits Bailadila Complex for the period from 24th to 31st March'20 for FY 19-20. Howeverthere was no impact on sales in Donimalai Complex (Karnataka) as NMDC had achieved theMPAP (maximum permissible annual production) i.e. 70 Lakh T before the lockdown wasenforced. Hence the total loss of sales volume assessed for affected period is about 5.5-6 Lakh T of iron ore.

iii) Financial:-

The COVID 19 had a marginal impact on the operations of the company due to the lockdown in the country in March 20. There has been a loss of around 10.01 LMT of Productionand 5.50 LMT of Sate of Iron ore during FY 2019-20 (in March 20). This has resulted in aloss in sale revenue of around Rs 219 Crore and PBT of Rs 120 crore.

iv) Steps taken to fight Covid-19 Pandemic:-

NMDC as a responsible Corporate Citizen took a series of steps to prevent the outbreakof COVID in its townships and work places. To ensure all our employees and their familiesare aware of the precautions to be taken several circulars have been issued posters andbanners have been displayed at various locations. Social Media like Facebook Twitter etcwere used to the maximum extent to spread awareness. All Government instructions werestrictly complied with and were also given publicity. To mitigate the hardship of ourcontract associates and employees an ex-gratia of Rs. 1000/- each was paid to allemployees and contract associates.

Sanitisation of work spots transport vehicles maintaining physical distancing bystaggering shifts rostering of employees use of thermal scanning etc helped preventingany outbreak of COVID during the lockdown period.

To overcome the shortage of sanitizers and masks self help groups were formed throughour CSR initiative and about 1.5 lakh masks and 13000 litres of sanitizers were procuredthrough them and distributed to the needy. Besides this NMDC also promoted annadanam atthe Projects and about 13500 packets comprising of food grains and other necessary itemslike Sugar Onion Potato Washing Powder Matchstick etc. were distributed to the needytribal families/nearby villagers.

Migrant labour at NISP who wanted to go back home after the lockdown was relaxed weregiven necessary assistance in coordination with the State Government.





Percentage of Change
2018-2019 2019-2020
Iron Ore (Million tonnes) 32.36 31.49 (-) 2.69 %
Diamond (Carats) 38149 28537 (-) 25.20 %
Sponge Iron (Tonnes) 2475 0.00 -
Pellets (Tonnes) 115623 110481 (-) 4.45 %




(in Million Tones)

(Rs. in crore)


% of change


% of change
2018-19 2019-20 2018-19 2019-20
Domestic 31.18 29.07 (-) 6.77 % 11452.33 9995.82 (-) 12.72 %
Export through MMTC 1.18 2.44 (+) 106.78 % 545.65 1573.18 (+) 188.31 %
Total Sales 32.36 31.51 (-) 2.63% 11997.98 11569.00 (-) 3.58 %



2018-19 2019-20
a) Diamond
Sales (carats) 29346 33723
Value (Rs. in crore) 38.86 34.29
b) Sponge Iron
Sales (tonnes) 495.58 1943.88
Value (Rs. in crore) 0.94 4.39
c) Wind Power
Sales (lakh units) 1.62 1.59
Value (Rs. in crore) 5.51 5.39




Percentage of change
2018-2019 2019-2020
Profit Before Tax (PBT) (Rs. in crore) 7199 6123 (-) 14.95 %
Profit After Tax (PAT) (Rs. in crore) 4642 3610 (-) 22.23 %
Net Worth (Rs. in crore) 25952 27534 (+) 6.10 %
Book value per share (Rs.) 84.76 89.92 (+) 6.09 %
Earnings per Share (Rs.) 14.70 11.79 (-) 19.80 %

There has been no change in the nature of business for the year under review.

Profit & Dividend

During the year under review your Company has earned profit before tax from continuingoperations of Rs.6123 crores on a turnover of Rs.1 1699 crores in comparison withprevious year's achievement of Rs. 7199 crores and Rs. 12153 crores respectively.

The Company has declared Interim Dividend for FY 2019-20 @ Rs. 5.29 per share in themonth of February 2020 involving an outgo of Rs.1619.72 crores. The share of Governmentwith equity stake of 69.65 % is Rs.1128 crores.

Transfer to Reserves

The company proposed to transfer Rs.1500 crore from net profit to General Reserve.

Material changes and commitments if any affecting the financial position of thecompany which have occurred between the end of financial year of the company to which thefinancial statements relate and the date of the report:



The company has not accepted any deposits covered under Chapter-V of the Companies Act2013 during the year under review.


Necessary disclosure in respect of Internal Control Systems and their adequacy has beenmade in Annexure-C to the Independent Auditors' Report dated 16th June 2020 which formspart of the Annual Report.


Necessary details in this regard have been disclosed in the financial statements.

Particulars of Contracts or Arrangements with Related Parties Disclosures

Disclosure on related party transactions forms part of the Notes to the Balance Sheetboth of Standalone and Consolidated.

Maintenance of Cost Records

Section 148(1) of the Companies Act 2013 specifies the provisions of maintenance ofCost Records of the company. The company is maintaining such records as per Rule 4(2) ofthe Companies (Cost Records and Audit) Rules 2014 under both regulatory and non-regulatoryservices.


The Audit Report for both Standalone and Consolidated Financial Statements for the year2019-20 is unmodified and does not contain any qualification reservation or adverseremark.


The Secretarial Audit Report for the FY 2019-20 as done by M/s Hanumanta Raju &Co. Company Secretary in whole time practice does not contain any qualificationreservation or adverse remark.


In line with the Vision plan of augmenting its Production & Evacuation capacitytechnology upgradation diversification & value-added products NMDC has taken up manyambitious projects. Some of the projects have been completed and others are nearingcompletion. Action for new projects have been initiated. During the financial year2019-20 the details of Projects undertaken by NMDC are summarized as under:

Ongoing Projects:

1. Screening Plant III - Kirandul Complex

2. Additional Screening Line & up gradation of existing conveyor at Kirandul.

3. Slurry Pipeline Project which includes facilities like 15 MTPA Slurry Pipeline fromBacheli to Nagarnar along with 2.0 MTPA Ore Processing Plant at Bacheli and 2.0 MTPAPellet Plant at Nagarnar

4. Doubling of KK line between Kirandul & Jagdalpur Projects in pipeline:

1. Screening Plant II- Donimalai Complex

2. Additional Screening Line & up gradation of existing conveyor at Bacheli.

Projects/Schemes for capacity expansion

To augment the production and to improve the quality of product mix from BailadilaSector the schemes like SP-III Kirandul relocating Crushing Plant of Dep.14 & 11/Cand Downhill conveyor additional screening lines in Bacheli & Kirandul Rapid WagonLoading System (RWLS) etc. are envisaged. Waste mining and increase in evacuation capacitybeing a major area of focus for enhancing the life of mines the schemes likebeneficiation plant at Bacheli & Kirandul and Slurry pipeline from Bacheli to Nagarnarhas also been taken up.

In screening Plant-III Kirandul project the site work in packages like sitedevelopment package RWLS package are in progress. Other packages like Dry circuitpackage Wet circuit package etc. are at different stages of tendering process.

Additional Screening Line & up gradation of existing conveyor at Kirandul isexpected to be commissioned by August 2020.

The upcoming scheme in Donimalai Complex includes a Second Screening Plant of 10.0 MTPAcapacity for handling the ROM from Donimalai & Kumaraswamy mines in addition to theexisting Screening Plant. Statutory clearances for 10.0 MTPA Screening Plant-ll isawaited. This project is linked with the grant of lease of Donimalai Mine.

Projects/Schemes to enhance evacuation capacity

To augment the evacuation capacity from Bailadila sector many projects & schemesare taken up like doubling of KK line Slurry Pipeline etc.

Doubling of KK line between Kirandul & Jagdalpur (150.462 km) is being executed byRailways as a deposit work and is in advance stage. 45.50 kms line between Jagdalpur &Silakjhori and 7.32 kms line between Dantewada & Gidam were completed during the FY2017-18 and opened for traffic. Further during FY 201819 9.2 Kms line between Silakjhoriand Kumharsodra was completed and opened for traffic. Works are in progress in otherreaches. Doubling between Gidam & Kumharsodra (43 kms) is expected to be completed inFY 2020-21. Doubling between Kirandul & Bacheli (9 kms) is expected to be completed inFY 2021-22 and between Bacheli & Dantewada (34 kms) is expected to be completed in FY2022-23.

For minimizing the rake loading time & increasing the evacuation capacity atKirandul installation of additional rail line for 2nd RWLS is being planned. DPR in thisregard is submitted to East Coast Railway Bhubaneswar and approval is expected soon.

NMDC has taken up an ambitious project of laying Slurry pipeline from Bailadila toJagdalpur and further up to Visakhapatnam. The Capacity of the line is 15 MTPA and thiswill be associated with facilities like beneficiation plant at Kirandul & Bachelipellet plant at Nagarnar.

The slurry pipeline between Bacheli to Nagarnar is being executed by NMDC. An EoI isbeing issued for identifying the partners for execution of Slurry Pipeline from Nagarnarto Vizag on JV mode.

The activities for taking a corridor of land for Right of Use (ROU) for laying theSlurry pipe line is in progress.

Field demarcation/assessment of properties in pipeline corridor are completed for 57/61villages. Draft 6(1) notification is also under preparation by engaging a consultant.

Site levelling works of Ore Processing Plant (OPP) at Bacheli and Pellet Plant atNagarnar are completed along with soil investigation studies. Works orders are alreadyissued for packages like Main Receiving Substation Slurry Pumping system packages.

Tendering action for technology packages is in progress for OPP at Bacheli PelletPlant at Nagarnar and Slurry Pipeline packages.

Solar Power Projects

As a part of Govt. thrust to tap renewable energy sources 1 MW capacity grid connectedRoof Top Solar (RTS) power plants are installed and commissioned in the month of July-2019in various production units of NMDC (Bailadila Iron Ore Mine Kirandul Complex &Bacheli Complex and Donimalai Iron Ore Mine Donimalai Complex). All the RTS power plantsare in operation since then. With this NMDC has joined other major corporates inharnessing solar power which has assumed a greater significance in recent times.

Steel Plant Project at Nagarnar Chhattisgarh:

Steel Plant project at Nagarnar is progressing for construction completion stage andreaching its commissioning phase. Effect of COVID-19 resulted in shortage of manpoweravailability at site and has severely impacted the pace of work in all packages. Visit offoreign specialists for various testing & commissioning also got affected because ofCOVID-19. Due to the above reasons it is expected that delay in completion of balancework of steel plant project is likely.

The power requirement for operation of steel plant is already made available at varioussub-stations to ensure its supply to different package facilities. Railway connectivity tothe plant to fulfil the initial inward and outward movement of materials is already inplace. Conducting cold trial Preliminary Acceptance Test etc. of individual equipmentsare under progress as precommissioning activities. Project has obtained various statutoryclearances viz. Consent To Operate (CTO) Factory licence for phase-I commissioningrequirements (i.e for packages like RMHS Coke Oven Power & Blowing Stations OxygenPlant Compressed Air Stations etc.) IBR approvals for Power & Blowing Stations andCoke Oven Plant etc. as a preparedness for commissioning of steel plant. The CAPEXachievement w.r.t steel plant during the year 2019-20 is Rs. 1451 crores and expenditureincurred so far is Rs. 16994 crores.

Initiatives for Technological upgradation

i. Electronic number taking through optical Character recognition cameras querybased PLC print facility and integration with freight online information system of EastCoast Railways

Wagon loading print facility system (WLPFS) for Kirandul Complex has been upgraded toelectronic number taker assembly system with optical character recognition cameras andhybrid power supply system with battery backup for 24x7 continuous reading of wagonnumbers sick wagon detection and reporting before loading of all wagons thus eliminatingmanual number taking and subsequently saving time after placement of wagons. The WLFPS hasbeen directly integrated to East Coast Railways (ECOR) freight online information systemfor direct data transfer after loading thus reducing the turnaround time of rakes. Thesesystems are one of the first in India.

ii. Up gradation of Drive System for Belt Conveyor BC-414 & BC-504 to CST drive forDonimalai Complex.

Existing Squirrel Cage Induction motors with rotor resistance box for both the downhillconveyors from Screening Plant to Loading Plant is being upgraded from Conventional bevelhelical gear box to PLC based Controlled start Transmission drive with viscous fluidclutch and disc brakes for smooth starting high operational efficiency running at fullcapacity low maintenance regeneration of energy and decreasing direct impact of load andlife of motor.

iii. Installation of continuous conveyor belt monitoring system for BC 28 & 29 ofBacheli Complex.

Since there is no continuous monitoring system for 24 x 7 monitoring of lengthydownhill tunnel conveyor belts an X-ray/eddy current PLC based continuous monitoringsystem has been proposed for monitoring continuously the condition of lengthy downhillsteel chord tunnel conveyors having very difficult access. The system will monitorripping warping breaking misalignment of steel cords of belts. It can also be used forquick positioning for splicing top and bottom rubber cover monitoring etc which savestime decreases break down and increases productivity substantially.

iv. Automation of Screening Plant-1 of Kirandul Complex

SP-1 of Kirandul Complex is being automated with latest DCS system SCADA and RIOnetwork and integration with other plant DCS and ERP for the first time since inception.The automation will reduce fault finding and trouble shooting increase efficiencycontinuous monitoring of operations energy and productivity of Kirandul Complex.

v. Compact & Energy efficient Hydraulic Drive:

Compact & Energy efficient Hydraulic Drive is ordered on Maha Hydraulics PrivateLimited for replacement of existing Mechanical Gear Box for bucket wheel drive in Bucketwheel reclaimer of Kirandul Complex loading Plant.

Hydraulic Drive has the following advantages over the mechanical/conventional gearboxes.

a) Less Power consumption due to overall efficiency of Hydraulic drive being 86%against 74% of Electro-Mechanical Drive.

b) Unlimited Start Stops Electrical Motor need not be stopped for stopping theHydraulic Drive.

c) Optimized installed power Hydraulic Drive delivers High Torque at Low Speed can beoperated at low speeds; Smooth starting of the Equipment.

d) Hydraulic Drive can absorb shock loads and can protect the driven equipment.

e) Very less by weight resulting in less counterweight and less load on Slew Bearing.

f) Low maintenance due to smooth & uniform acceleration absorption of shock loadsand anti vibration characteristics.

g) Total value of the Procurement work is 121.25 lakhs.

h) The assembly is installed commissioned on 08.11.2019 and working satisfactory.

vi. Up gradation of downhill braking system of Dep-11C.

Dep.11C of Kirandul Downhill conveyors 124 125 & 126 Existing Thruster BrakingSystem is upgraded by Fail Safe Hydraulic Disc Brake assemblies with soft braking option(on Slow Speed side).

The Procurement and work are awarded to Sibre Brakes (India) Pvt. Ltd. Kolkata on29.05.2020 at value of Rs. 366.16 lakhs. This Braking System is first of its kind in NMDC.

Overseas Projects/NMDC Global Australia Legacy Iron Ore Ltd. Perth Australia

Legacy Iron Ore Ltd is an ASX listed entity based in Perth Australia with a focus oniron ore gold and base metals. NMDC has 92.32% equity in the company.

Legacy is holding 21 exploration tenements in Iron Ore Gold Base Metals &Tungsten in Western Australia. Legacy has 60% interest in Mt Bevan Iron Ore Project whichhas a JORC compliant Indicated and Inferred resource of 1.17 billion tonnes magnetite. MtBevan tenement also has potential for nickel-copper mineralisation. Currently explorationdrilling is being carried out in Gold Targets to get the confidence & complete thefeasibility study.

Legacy's major gold focus lies in the South Laverton region and base metals focus liesin the Koongie Park region of Western Australia. Mt Celia Gold project has identified twogold occurrences namely Kangaroo Bore and Blue Peter deposits. Total 14755m (183 holes)drilling was done in these tenements with a total gold resource of 3.41 mn tonnes @ 1.68g/t (metal content of 184100 ounces). Pit optimisation study conducted by AMC consultinghas demonstrated good potential in both these deposits.

In FY'20 Legacy has completed 500 mts of drilling in Gold/ Nickle tenements. Furtherdrilling of 4000 mtrs is planned in current year in Mt Celia project to fill the gapsidentified by pit optimisation study. Legacy has completed 2800 mtrs of RC drillingcovering 29 holes in FY'21 till May.

Legacy Iron Ore has raised AS 9.227 million through rights issue in Dec'19. NMDC'sequity in the company has increased to 92.32% after the Rights issue from earlier stakeof 78.56%.

International Coal Ventures Pvt. Ltd. (ICVL)

ICVL a joint venture company of SAIL RINL & NMDC acquired a coking/thermal coalmine in Mozambique in 2014 and operation of the same was taken over by ICVL. NMDC holds26% stake in ICVL. Benga Mine one of the operational asset of ICVL has produced about1.78 MT of total saleable coal in FY'20 compared to 1.32 MT in FY'19 which is a all timehigh since inception.

Venture into Battery Raw materials

NMDC has reviewed its International Strategy through one of the top global strategicconsultant. Based on the outcome NMDC will venture into Battery Raw Materials which isalso required for the countries future Electric Vehicle potential.



Extension of Bailadila Iron Ore Mining Leases:

All the five NMDC Iron ore Mining leases are extended for further period of 20 yearsunder Rule (3) of Mineral (Mining by Government Company) Rules 2015. The forest clearancefor all the Mining Leases also got extended. The details are as under:-

S. No. Name of Mining Lease Area in Ha Date of grant of extension of ML Date of execution of lease ML Validity FC validity (coterminus with lease period)
1 Bailadila Deposit-11 (AB & C) 874.924 3/5/2018 14/12/2018 10/9/2037 10/9/2037
2 Bailadila Deposit-14 322.368 17/12/2019 10/1/2020 11/09/2035 11/9/2035
3 Bailadila Deposit-14NMZ 506.742 17/12/2019 10/1/2020 6/12/2035 6/12/2035
4 Bailadila Deposit-5 540.05 17/12/2019 10/1/2020 10/9/2035 10/9/2035
5 Bailadila Deposit-10 309.340 17/12/2019 10/1/2020 10/09/2035 10/09/2035

Bailadila Deposit No.1 & 3:

The Company has filed Writ Petition before the Hon'ble High Court of Delhi againstallotment of Deposit-1 to Tata Steel & PL of Deposit-3 to ESSAR Steels. The WritPetitions are being heard before the Hon'ble High Court of New Delhi.

Copper in Chhattisgarh:

The company has submitted the proposal to the Secretary Govt. of Chhattisgarh forNodenar-Modenar Copper Block over an area of 21.24 sq km for prospecting and exploitationin Bastar & South Bastar Dist. for reservation under section 17(A) (2A) of MM(D&R) Amendment Act 2015. The matter is being pursued with Govt. of Chhattisgarh.


Iron Ore Sasangada:

A JV Company (NMDC 60% & JSMDC 40%) Jharkhand National Mineral DevelopmentCorporation Limited (JNMDC) has been incorporated at Ranchi. DMG Govt of Jharkhand hasgranted PL for iron ore & Manganese in Sasangada NE area in favour of JNMDC Ltd for aperiod of 3 years. Detailed Geological mapping and topographical survey completed. Due todelay in obtaining forest clearance drilling could not commence in the lease period.JNMDC requested the Secretary Dept of Industries Mines & Geology GoJ forreservation of Sasangada Iron ore and Manganese deposit under Section 17A(2A) ofMM(D&R) Amendment Act 2015 for grant of Prospecting and Exploitation. The matter isbeing pursued with Govt. of Jharkhand for reservation.


The Company has submitted a proposal to the Secretary Dept. of Industries Mines &Geology Govt. of Jharkhand for reservation of Ghatkuri Iron ore deposit West SinghbumDistrict under Section 17A(2A) of MM(D&R) Amendment Act 2015 for grant in favour ofJNMDC for Prospecting and Mining operation to provide iron ore linkage to upcomingJharkhand Kolhan Steel Limited.

The matter is being pursued with Govt. of Jharkhand for reservation in favour of JNMDC.

M/s M L Jain & Sons and M/s R Mc Dill Co Pvt. Ltd:

The Company has submitted application for reservation of identified block by clusteringmining Leases of M/s M L Jain & Sons and M/s R Mc Dill Co Pvt. Ltd (Total Area 312.43Ha) in favour of JNMDC for Composite Licence under section 17A(2A) of MM(DR) AmendmentAct-2015. The matter is being pursued with Govt. of Jharkhand for reserving deposit infavour of JNMDC.

Gold: In Jharkhand

Gold & associated mineral Deposit: Vide letter dt. 1.1.2019 NMDC submittedapplication to the Secretary cum Commissioner DMG GoJH for proposal to reserve 24.80 Sq.Km. area in Kuchai Tehsil District Saraikela- Kaswan Jharkahnd under Section 17A (2A)of MM(D&R) Amend. Act 2015 for prospecting and mining operation of Gold &associated minerals. The matter is being pursued with Govt. of Jharkhand for reservation.

Various minerals: In Jharkhand

Tambadungri Copper Nickel cobalt and molybdenum mineral -NMDC submitted the proposalto the Secretary- cum-Commissioner Dept. of Mines & Geology Govt. of Jharkhand videletter dated 30.01.2019 to reserve an area of 16.70 Sq. Km in Saraikela-Kharswan districtJharkhand under Section 17A(2A) of MM(D&R) Amendment Act 2015 for grant of Prospectingand Mining operation of Copper Nickel cobalt and molybdenum mineral. The matter is beingpursued with Govt. of Jharkhand for reservation.


The Company is pursuing for ML for Ramandurg and Kumarswamy Deposit (contiguous to MLNo.1111). Ramandurg iron ore deposit is subjudice and pending in the Hon'ble Supreme Courtof India.

In addition the company has applied for 3 Prospective blocks contiguous to DonimalaiML under reservation route.

Other Minerals:

The company has submitted a proposal to the Director DMG Govt of Karnataka to reserve24.95 Sq. Km. area for lithium and other associated elements in Raichur DistrictKarnataka under Section 17A (2A) of MM (D&R) Amendment Act 2015 for grant ofprospecting and mining operation. The matter is being pursued with Govt. of Chhattisgarhfor reservation.


Iron & Manganese Ore:

The Company is pursuing for reservation for Mankadnacha Malangtoli Khandadhar (A& B Blocks) Rakma & Murgaberha iron ore deposits and Panduliposi Iron Ore &Manganese Deposit.


Kansa Block-Vide letter dt. 1.1.2019 NMDC has submitted application to the DMG Govt.of Odisha for proposal to reserve 8.0 Sq. Km. area Jajpur District Odisha under Section17A(2A) of MM(D&R) Amendment Act 2015 for prospecting and mining operation of Nickel.The matter is being pursued with Govt. of Odisha for reservation.


Tripartite MoU among GoMP (MRD through DGM) MPSMCL & NMDC was signed forgeological and geophysical exploration in various Districts of M.P. Govt. of MadhyaPradesh issued Gazette Notifications of 3 iron ore prospective blocks 20 diamondprospective blocks and 1 various minerals prospective block which are applied under MoUfor exploration and subsequent reservation.

Iron Ore Prospective Blocks:

a) Sidhi Block in Sidhi & Singrauli Districts

Identified 5 iron ore sub blocks. Geological mapping and Geochemical Mapping completedin 5 potential sub-blocks. NMDC completed Geophysical Surveys in One Block. TopographicSurveys using SP2 60 GNSS completed. Core drilling planned to establish the quantity andgrade for which Forest application for drilling has been submitted. Matter is beingpursued with Govt. of M.P.

b) Dhaurra block -Based on Geophysical survey Geological mapping and surfacegeochemical sampling one low grade iron ore body has been identified.

c) Dulchipur-Bagroda block- Based on Geological field traverses and surfacegeochemical sampling one low grade iron ore body has been identified.

Diamond Prospective Blocks (3 Large Block 5 Small Blocks and 12 Additional Blocks):The status of exploration are as under:

• Remote Sensing Studies have been completed in collaboration with NRSC.Chhattarpur Panna Block 1 Chhattarpur Panna Block 2 and Damoh Block Panna (5 ProspectiveBlocks) and Additional 12 Diamond Blocks.

• Established several target areas after conducting ground magnetic VLF-EM &Gravity surveys and stream sediment sampling and also demarcated several additionalanomalous areas in the diamond blocks by processing the Raw Aeromagnetic Data acquiredprovided by GSI in Diamond Blocks.

• Forest applications for drilling has been prepared and submitted. The matter isbeing pursued with Forest Dept. for obtaining permission for drilling.

Prospective block for various minerals:

After Remote Sensing Studies and detailed Geological traverses one Ferro-Manganeseblock identified in Jabalpur-Katni Block. Large scale geological mapping surfaceGeochemical Mapping and Ground Geophysical Survey (Magnetic survey) and Topographicalsurvey completed in one identified Ferro -Manganese sub block. Core drilling planned toestablish the quantity and grade for which Forest application for drilling has beensubmitted. The matter is being pursued with Forest Dept. for obtaining permission fordrilling.

Tikamgarh PL's:

Based on RP works 5 PL applications were submitted to Mining Officer Tikamgarh. All5PLs for Diamond in Tikamgarh District in Madhya Pradesh were forwarded by MP Govt. toMoM Gol New Delhi. The MoM New Delhi requested Secretary MRD GOMP Controller Generalof IBM and DG GSI for their comments for grant of PL's in favour of NMDC. MRD Secretarysent comments for grant of the above PL's in favor of NMDC. Matter is being pursed withMoM New Delhi for prior grant. The company will start detailed exploration in these areasafter grant of PL's.


The Company has applied for Ramgiri prospective block for Iron Ore in Anantapurdistrict. NMDC has requested State Govt. to reserve this block in favour of NMDC under 17A(2A) of MM (D&R) Amendment Act 2015.

The Company has applied for Peravali - Betapalli Block for Gold. NMDC has requestedState Govt. to reserve this block in favour of NMDC under 17A (2A) of MM (D&R)Amendment Act 2015 for Prospecting & Mining.


Khobna Tungsten Block - Your Company has submitted the proposal for reservation ofKhobna Tungsten Block Nagpur District Maharashtra under section 17(A) (2A) of MM(D&R) Amendment Act 2015 for Prospecting and Exploitation. The matter is beingpursued with Govt. of Maharashtra.


Coal Blocks allocation under Section-5 of the Coal Mines (Special Provision) Act 2015:

Ministry of Coal has declared NMDC as successful allottee of Tokisud North Coal Mine(Non Coking Coal) & Rohne Coal Mine (Coking Coal). Statutory payment for Tokisud NorthCoal Mine has been made based on allotment agreement and Allotment Order awaited.Allotment agreement of Rohne Mine is awaited.

Exploration under Sub-section (1) of Section (4) of MM (D&R) Act 1957 in MoM GoIallotted Blocks under NMET.

Your company has been allocated 5 blocks (2 iron ore blocks in Jharkhand &Maharashtra and 3 Gold blocks 2 in Karnataka & 1 in M.P.) by Ministry of Mines Golfor G4 level exploration. NMDC submitted the Geological Report of Iron Blocks and NMETreimbursed the exploration cost. NMDC also submitted Geological Report of Bukkapatna GoldBlock to NMET. Exploration work is under progress in remaining two Blocks.


Your company has successfully bidded for Chigargunta- Bisanatham gold block for MiningLease (ML area 263.01 Ha.) located in Chittoor district in Andhra Pradesh throughe-auction route with a final bid offer of 38.25%. NMDC requested Govt. of Andhra Pradeshto issue the LOI to enable NMDC for taking further course of action. The matter is beingpursued with Govt. of Andhra Pradesh for issuing LOI in favour of NMDC.


NMDC-CMDC Ltd. is a subsidiary of NMDC Ltd. with equity share holding of NMDC Ltd. andCMDC Ltd. in the ratio of 51:49. The present Mining Lease Grant status of both thedeposits are as follows:

Bailadila Iron Ore Deposit No.13 Mining lease has been transferred in favour of NMDC -CMDC Limited (NCL). The modified mining plan has been approved by IBM Raipur. EnvironmentClearance has been transferred in favour of NCL. Action has been taken for transfer ForestClearances. MRD Govt. of Chhattisgarh has issued a show cause notice to NMDC- CMDCLimited (NCL) for lapsing the Mining Lease of Deposit-13 for non-commencement of miningoperation within 2 years from grant of mining lease. NMDC-CMDC Limited (NCL) has submittedthe reply to the MRD GOCG and requested for its withdrawal.

Bailadila Iron Ore Deposit No.4

Ministry of Mines Govt of India vide Gazette Notification No. G.S.R. 697 (E) dated30.09.2019 has reserved an area of 646.596 ha in favour of NMDC- CMDC Limited (NCL) undersub-section (1A) of section 17 A of the MM (DR) Act- 1957 for prospecting and miningoperations. Since NMDC has done the exploration work NMDC-CMDC Limited (NCL) hassubmitted an application for grant of mining lease of Deposit no. 4 in schedule -VI ofMCR 2016 to Secretary Mineral Resource Department CG. Matter is being pursued with C.G.Govt for grant of ML in favour of NCL.


Baloda - Belmundi Diamond Block - Your company has submitted the proposal to theSecretary MRD Govt. of Chhattisgarh for Baloda - Belmundi Diamond Block over an area of156.80 sq km in Saraipali Tehsil Mahasamund Dist. for reservation under section 17(A)(2A) of MM (D&R) Amendment Act 2015 for Diamond for prospecting and exploitation. Thematter is being pursued with Govt. of Chhattisgarh.


a) NMDC has 8 subsidiaries and stake in 5 Associate and 5 JV Companies. The names ofthese Companies and percentage of NMDC stake in these companies are as follows:


The company has obtained Amendment to ToR on 24/9/2019 from MOEFCC for Dep-11 ML forobtaining EC along with Public hearing exemption from MOEFCC vide letter dated 01.11.2019.On 9/12/2019 the company also obtained amendment to TOR for obtaining EC from MoEF&CCfor KIOM by withdrawing ToR point nos.: 1&2. The company also obtained transfer of ECof Deposit-13 from NMDC to NCL on 12/12/2019.

The company obtained the extension of validity of existing Forest clearance co-terminuswith extended lease period under F.C. Act 1980 for Five Mining Leases of BailadilaDeposit-14 14 NMZ 11 5 & 10.

The company has got valid operating consents for all production projects. The Companyobtained Consent to Operate under Air (Prevention & Control of Pollution) Acts 1981and Water (Prevention & Control of Pollution) Act 1974 from Chhattisgarh EnvironmentConservation Board (CECB) for the following Projects:

• Bailadila Deposit-10 for 6.0 MTPA production for a period up to 18/07/2020.

• Bailadila Deposit-14/11C for 12 MTPA production for a period of one year i.e.from 01.01.2020 to 31.12.2020

• Bailadila Deposit-11B for 7 MTPA production for a period of two years i.e. from01.01.2020 to 31.12.2021

• NMDC Iron and Steel Plant at Nagarnar for a period up to 13/9/2020.

• Diamond Mining Project Panna for 100000 carat production for a period up to31/10/2021 for the Diamond Mine and up to 30/6/2020 for processing plant.

The company also obtained authorization under Hazardous Waste Management &Transboundary movement Rules 2016 for Bailadila Deposit-11B for used oil 75 KL from CECBRaipur for a period of 5 years w.e.f 23.08.2018 to 22.08.2023.

The company also Obtained NOC from Central Ground Water Authority (CGWA) forKumarmarenga Railway siding for ground water withdrawal which is valid for 2 years up to14/05/2021 and approval from MoEF&CC on 10/7/2019 for change of nomenclature fromrenewal of mining lease to infrastructure for Deposit-10 Float ore over an area of 142.80Ha.

The Environment Management works carried out by NMDC in the FY 2019-20 includes variousR&R works such as plantation of around 1.3 Lakh saplings in and around the leaseareas construction and repair of buttress walls check dams garland drains rainwaterharvesting pits etc. The works also include seed broadcasting and laying of geo-coirmatting on the inactive dump sites.

The Company is organizing monitoring studies covering all environmental parameters byrecognized laboratories. The studies indicated that all environmental parameters are foundto be well within the limits.

Sustainable Development (SD) Performance

Under S.D. programme construction of Sewage Treatment Plant with SBR technology atBacheli at a cost of Rs.6.61 Cr has been constructed. Similar treatment plant at Kirandulat a cost of Rs 8.0 Cr for treatment of domestic effluents is under construction stage.BIOM Bacheli Complex was awarded Greentech Environment Award (Winner) and 4 first prizesand 2 second prizes in various categories including 1st prize in Overall Performancecategory in Mines Environment and Mineral Conservation Week. Every year Carbon Footprintstudies are being conducted for disclosure of Greenhouse Gas Emissions in CarbonDisclosure Project (CDP).


Mine Safety - Activities

NMDC has its training centers in all its projects. They are equipped withinfrastructure as required under Mines Vocational Training Rules. These centers cater tothe needs of basic training refresher training and training for skilled workers and alsofor those injured on duty.

In each mining project of NMDC sufficient number of workmen inspectors arenominated/appointed for mining operations mechanical and electrical installations as perstatutory requirements.

Mine Level Tripartite Safety Committee Meetings are being conducted once in a year atProject Level with Senior Officials Union Representatives and DGMS Officials in whichSafety Performance and its appraisal are made and the recommendations are implemented.Mine Level Tripartite Safety Committee Meeting of Donimalai Complex (DIOM & KIOM) hasbeen conducted on 12.09.2019 and other projects viz. Bailadila Iron Ore Mine KirandulComplex; Bailadila Iron Ore Mine Bacheli Complex and Diamond Mining Project Panna couldnot conduct the Mine Level Tripartite Safety Committee Meeting due to Covid-19 pandemic.

Corporate Level Tripartite Safety Committee Meetings are being held regularly once in ayear at Head Office.

30th Corporate Level Tripartite Safety Committee Meeting of Bailadila Iron OreMines/Diamond Mining Project and Donimalai Iron Ore Mine/Kumarswamy Iron Ore Mine couldnot be conducted due to Covid-19 pandemic.

Safety Committees have been constituted in every operating mine and pit safety meetingsare held every month discussing the safety matters and corrective actions related to workatmosphere.

Man days lost per 1000 man days worked for the year 2019-20 is 0.15 and 7.04 for theyear 2018-19.

Integrated Management System (IMS)

Comprising of Quality Management System (QMS) - ISO 9001:2015; Environmental ManagementSystem (EMS) - ISO 14001:2015; Occupational Health & Safety Management System (OHSMS)- OHSAS 18001:2007 & Social Accountability - SA 8000:2014 Certification Standards.

All the NMDC Production Projects viz. BIOM KC; BIOM BC; DIOM; KIOM; DMP Pannaincluding R & D Centre are accredited with Integrated Management System (IMS)

OHS Activities:

Occupational Health Services have been provided with adequate manpower andinfrastructure and are functioning in full-fledged manner at all the projects headed byQualified Doctors trained in OHS at Central Labour Institute Mumbai.

Periodical Medical Examination under statute is carried out regularly in all theprojects.

Safety Management System:

Safety Management System has been implemented in all our mines. Risk Assessment studiesare being conducted regularly.


With the objective of improving transparency in procurement NMDC had entered into MOUwith Transparency International India for implementation of Integrity Pact Programmeduring September 2007. NMDC is the first Mining Navratna Company which entered intoIntegrity Pact Programme in the year 2007.

Initially the threshold value for procurement & contracts for entering into theIntegrity Pact have been fixed as follows:-

Contracts : Rs. 50.00 crores
Procurements : Rs. 15.00 crores

To widen the coverage of procurements/contracts under Integrity Pact the thresholdlimits have been revised during 2009 as under:

Contracts : Rs. 20.00 crores
Procurements : Rs. 10.00 crores

Subsequently to cover majority of cases under Integrity Pact the threshold limitshave been reduced to Rs.1.00 crore for procurements/contracts w.e.f September 2018. During2019-20 63 tenders valuing Rs.445 crores were covered under this category.

Transparency in procurements handled

In order to enhance transparency in procurements & increasing competitiveness yourcompany adopted the following modes of tendering:-

• e-Procurement:

• All procurements of value above Rs.2 lakh are tendered through e-mode at HO& Projects.

Reverse e-auctions are conducted for high value spares & consumables whereverpossible by declaring upfront in the tender document.

• Broad basing of vendors done for high value items viz. Milled Ferro SiliconCrusher Spares Under Carriage parts of Excavators TCRR bits conveyer belts and plantitems which resulted in substantial savings in cost.

• Mode of Tendering: Efforts are continuously taken to minimize proprietary &single tender purchases. Instead open/global tenders are resorted to by givinggeneralized specifications & drawings wherever possible or with OEM Part Numbers.Single Tender/Proprietary purchases have been reduced from Rs.1579.15 lakhs (85 cases)during 2017-18 to Rs.287.67 lakhs (34 cases) during 2018-19. This was further reduced toRs.271.85 lakhs (26 cases) during 2019-20.

• Pre-qualifying conditions: PQC for conveyor belts & HEM equipments tendershave been revisited and a structured PQCs have been made keeping in view widerparticipation.

• GeM Portal: Procurement through GeM portal as per the guidelines of GOI isbeing done for the Materials which are available in the GeM Portal. Total 1017 ordersvaluing Rs.16.00 crores were placed during the year 2019-20.

CPP Portal: MM Dept. is posting tenders in the CPP portal except Single tender andproprietary items. All the bidders approaching through CPP portal for entering in NMDC areinvited for registration with NMDC or conducting trial with NMDC for ensuring theirquality product.


NMDC R&D centre is dedicated to undertake product and technology developmentprojects related to ores minerals and steel making to maintain its excellence in processperformance. R&D centre has made significant contribution not only to NMDC operatingprojects but also to Indian industries and is recognized by Department of Scientific andIndustrial Research (DSIR). R&D centre undertakes works related to mineral processingflow sheet development mineralogical studies material handling & storagemetallurgical studies of iron ore and coal chemical analysis etc. It is a pioneer in thefield of beneficiation and continuously working for development of dry beneficiationtechnology for different ores and minerals. It is endowed with state of art laboratoryequipment to analyze different minerals coals metals and non-metals. For further detailsreference may be made to Annexure-II attached to the Directors' Report.


NMDC's Global Exploration Centre at Raipur is continuously doing exploration in themines of NMDC and adding new reserves every year. NMDC has offered to State Governments toundertake free exploration to quantify mineral resources in the State.


NMDC effectively implemented Official Language Policy of Government of India in itsHeadquarters Projects and Units.

Giving a thrust on training in Hindi language "Hindi Parangat" trainingcontinued during the year at Hindi training center of Head Office. Eight batches ofemployees have already completed the course successfully. Hindi Workshops were conductedin every quarter at Head Office as well as Projects for practical training of officialwork in Hindi. Training in "Hindi Unicode" was imparted to work in Hindi oncomputers. Regular classes are held in its premises with the help of Hindi Teaching Schemeof Govt of India to impart Hindi Stenography training to English Stenographers.

Incentive Schemes for writing noting letters Registers in Hindi and giving dictationin Hindi were implemented throughout the year. Hindi Fortnight was celebrated. VariousHindi competitions were conducted and prizes distributed to the participants. In order tomaintain tempo of working in Hindi throughout the year monthly Hindi competitions vizNoting and letter writing Entries on Registers Dictation etc. were conducted.

Meetings of Official Language Implementation Committees were held in every quarter atHead Office and all the Projects. To monitor use of Rajbhasha and suggest measures toaugment the same inspections and Desk training programs were conducted at variousprojects and units. Rajbhasha contact programs were held every month at variousdepartments of HO by Officers of Rajbhasha Department to increase awareness towardsOfficial Language. Desk training in Hindi was also imparted during such programs. Quotesof famous personalities in Hindi were framed and displayed at important places in officepremises. Hindi books were purchased on subjects of common interest.

NMDC also continued its efforts for propagation of Rajbhasha at town level. A JointHindi workshop for small undertakings of Twin cities of Hyderabad-Secunderabad wasconducted at Head Office under the aegis of Town Official Language Committee(Undertakings) Hyderabad-Secunderabad. Also an "Inter-Undertaking Hindi ElocutionCompetition" was organized for employees of all the undertakings.

All India Rajbhasha Conference was also conducted at Head Office under aegis ofMinistry of Steel. Senior Officers from MOS its undertakings Officers from PSUs inHyderabad and Rajbhasha Officers/Nodal Officers from all the projects and units of NMDCattended the same. Rajbhasha Technical Seminars were conducted at BIOM Bacheli BIOMKirandul & and Diamond Mining Project Panna. House journal dedicated to Officiallanguage "Khanij Bharati" was published. Various Hindi/Bilingual/ Trilingualmagazines news magazines were also published from Head Office and Projects viz SarjanaBaila Samachar Bacheli Samachar Doni Samachar Heera Samachar She News etc. Toencourage usage of Rajbhasha in Projects and units shields were distributed under"NMDC Rajbhasha Shield" Scheme.

Rajbhasha Kirti Puraskar (Second) for PSU's in 'C' region was conferred on NMDCconsecutively for the second year by Government of India Ministry of Home Affairs for theyear 2018-19. NMDC also received First Prize-"Rajbhasha Shield" from TownOfficial Language Implementation Committee (Udertakings) Hyderabad- Secunderabad inmid-sized category for outstanding implementation of Rajbhasha during 2018-19. NMDC'sHindi Magazine "Khanij Bharati" was awarded "Best Magazine Award" inprinted magazine category among all the PSUs of Hyderabad-Secunderabad consecutively forthe third year. PRSI National Award (First) for 2019 and PRCI Golden award was alsoconferred on "Khanij Bharati". Rajbhasha Sammaan was conferred on NMDC by WorldHindi Council for outstanding implementation of Rajbhasha.


The company has taken the following steps to procure goods and services from MSE firmsMSE SC/ST & Women entrepreneurs. NMDC has conducted exclusive MSE SC/ST vendor meetsat its projects in Chhattisgarh and Karnataka to understand the tender process and ourrequirement. NMDC has participated in the various vendor meets organised by Ministry ofMicro Small & Medium Enterprises in association with FICCI. Besides NMDC hasorganised 5 Nos. Vendor Meets/programmes at various places in total during 2019-20. NMDCinteracted with prospective MSE entrepreneurs encouraging them for supply of goods forvarious plants at Bailadila & Donimalai.

For encouraging MSE SC/ST firms exclusive trials are being conducted and aftersuccessful trials the firms are given tender enquiry in Limited Tender.

Moreover against the qualification criteria in tenders we have not received anycomplaint/request with regard to relaxing tender terms & conditions. For the last 3years NMDC is achieving the targets as per Public Procurement Policy. The results of2019-20 are given below:-

Category of MSE Firm Norms Achievement
Procurement from MSE firms 25% 38.24%
Procurement from SC/ST MSE firms 4% 4.30%
Procurement from Women Entrepreneurs MSE firms 3% 4.03%

NMDC also received the Best Performer under the Navratna Category during the year 2019for our exemplary work towards promotion of SC/ST entrepreneurs based on the performanceparameters namely (i) procurement from SC/ST entrepreneurs (ii) No. of Vendor DevelopmentPrograms for SC/ST and (iii) Number of SC/ST entrepreneurs benefitted as per the datauploaded on Sambandh Portal.


Employee-Employer relations

The overall industrial relations situation was peaceful and cordial during the year.There was no strike/lockout against the Company's policies affecting production andproductivity

Scheduled Castes & Scheduled Tribes

08 candidates belonging to Scheduled Caste and 203 candidate belonging to ScheduledTribes were appointed in the year 2019 against 426 posts filled by direct recruitment.

Strength of SCs & STs as on 31stMarch 2020

1. Total number of employees = 5739
2. Scheduled Castes amongst them = 881
3. Scheduled Tribes amongst them = 1435
4. Total SCs and STs = 2316
5. Physically challenged employees = 101

Particulars of employees drawing remuneration of Rs.8.5 lakhs per month or Rs.1.02crores per annum under Section 197 of the Companies Act 2013 read with Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 as amended.


Staff Welfare activities

Adequate facilities for education health accommodation and recreation were in place.Various Bipartite fora have been functioning satisfactorily.

Promotion of Sports

Inter Project tournaments both indoor and outdoor for employees and games &sports for the wards of employees were held in different Projects during the year apartfrom promoting sports events under CSR.

Disclosure under Section 22 of the Sexual Harassment of Women at Workplace (PreventionProhibition and Redressal) Act 2013

No complaint has been received and no case has been filed under the Sexual Harassmentof Women at Workplace (Prevention Prohibition and Redressal Act 2013 during thefinancial year 2019-20.


At NMDC Limited Our people are at the heart of our business - everything we doincluding our success is dependent on them. Ensuring our employees are engaged and havethe skills and knowledge not just to perform in their roles but to grow develop and feelfulfilled is essential for us to prosper as a company.

We have a range of Learning and Capability building initiatives that are designed toimprove personal performance while achieving our business goals. These initiatives are inline with the current learning trends to suit the needs of today's learning: there isadditional focus on creating an eco system of learning across the learning through localand corporate initiatives.

Learning and Development initiatives offered during 2019-20 were aligned with BusinessGoals. The ongoing core programmes were revitalised to reflect the emerging capabilityrequirements. In addition to core programmes customised programmes were also offered toaddress the needs expressed by businesses aimed at building specific capabilities atvarious levels of the organisation.

Corporate HRD has Organized 24 Nos of Customised In House Training Programmes covering497 Executives during 2019-20 127 Nos of External Training Programmes covering 392executives on various subjects 108 Nos of Executives were sent abroad for ForeignTraining Programmes/AMP/Visits.

Talent Management Mentorship as well as Leadership Development for Women &Capability Development Programmes:

a) 7% of Executives (E0& above) are imparted Training for Continuation of TalentManagement and Career Progression through one week Training in Centre of Excellence withinIndia e.g. IITs IIMs NITs ICAI etc. 52 Executives at IIM Kozhikode 22 Executives atXLRI and 23 Executives at IPE Hyderabad

b) Conducted six number of Mentorship Programme for Women employees for Work lifeBalance as well as Leadership Development (Nos of Initiatives) 3 Programs are conductedwith AMP and 3 Programs are organized with Art of Living (AoL)

c) Organised the 6 Nos of Capability development Programmes for employees to buildtheir technical & managerial competencies for higher positions including special focuson Web Learning programme(s). 2 No of Programmes at IIT Kharagpur and 3 programs with M/SEDS technologies and 1 program with M/s Geosys Information Pvt Ltd Hyderabad.

Strengthening of Quality Circles:

Strengthened the Quality Circles Movement in NMDC by giving more thrust on QualityCircles activities by adding 5% more QCs this year. We have bagged 25 Gold Awards and 1Silver Awards in CCQC. 12 QCs participated in NCQC and bagged one Par Excellence Award 10Excellent Category Awards and one Meritorious Award

CMD's Trophy for Young Managers:

We have continued this scheme of a competition based on "Research Paper and itsPresentation" for Young Managers under the age of 40 years that is designed topromote Literature survey Research and Innovative thinking among our Young Managers. TheWinners to participate in International/National conference/Visit. Winners are sent toFerrous & Steel Outlook 2020 organized by S&P Global Platt's during 21 -23 Nov2019 at Singapore. Runners are sent to 4th Indian Iron Ore Pellet and DRI Summit in Delhiduring 2nd and 3rd March 2020.

Employee Engagement Initiatives for Young Executives "Youthrive":

We have continued to develop a sense of camaraderie amongst the Young Executives atNMDC who are from across the Projects/Units/ROs You' Thrive' - A unique EngagementInitiative for Young Executives has been organised at NMDC this Financial year as well.Winners and Runners are rewarded suitably.

Implementation of Succession Management Policy:

Updated the Succession Management plan and the same is approved by the Board as tocreate succession Matrix for the development of our senior executives to occupy keypositions by emphasizing on performance and potential of those executives working in thisOrganization.

Knowledge Management Framework (Samanvay):

Department of Public Enterprises (DPE) has developed Common Knowledge Management Portal"Samanvay" for all CPSEs in collaboration with ONGC with the intent to generatea platform for all CPSEs to collaborate and learn. The Knowledge Management Portal(https:// was smoothly implemented in NMDC Limited on which we can shareour Best Practices Case Studies tacit knowledge breakthrough innovations etc.

This portal also has a separate section on Infrastructure facilities such as R&DTraining and Equipment etc which can be shared with other CPSEs.

Celebration of International Women's day 2020:

NMDC Limited has observed week Long International Women's Day 2020 with great fervourand zeal at Corporate Office from 02.03.2020 to 07.03.2020 as to disseminate theinformation about NMDC's exemplary works/activities towards women empowerment in line withCompaign #Har Ek Kaam Desh Ke Naam# Ispatilrada. On this occasion all the womenexecutives/ employees Apprentices Trainees including contract workers were welcomed witha Greeting Card Flowers and Sweets. A host of events were lined-up throughout the week tomark this event. During this week Women employees visited Kasthurba Ashram anddistributed Fruits to residents of Kasthurba Ashram - A home for destitute women. We haveConducted Yoga/ Health and Wellness Programme to Women employees of Corporate Office byM/s Jayganaga Life Coaching Academy Odisha. Felicitated of Nursing Students undergoingTraining under Balika Shiksha Yojna and arranged motivational talk by Sr. WomenExecutives. We have conducted Competitions for women employees staff and Trainees on theeve of International Women's day. All women actively participated in the Competitions.

Learning from Each Other (LEO):

A series of workshops titled "Learning from Each Other" were organized atNMDC during the year 2019-20. The aim of these workshops were to share the best practicesmethods and techniques followed by NMDC in specific identified areas and learn tools andtechniques to sustain these practices through interaction with each other. Seniorexecutives of NMDC HO and experts in related areas interacted with participants in theseworkshops.

Culture Building through Learning Workshops:

At NMDC Limited to create a deeper bond among employees and thus improve overallhappiness we have Conducted Brain Storming sessions with all top Leaders of theOrganizations. To ensure crossemployee and departmental interaction the teams wererandomly selected and nominated for Culture Building workshops designed for two days andThree days at all levels. We believed that by making our people a priority and creatingprograms that encourage them to build relationships and friendships they will be happierand in turn with NMDC".

Skill Development Training:

Signed an MOU with NSDC for imparting Skill Development Training and RPLCertification for 400 workmen in NMDC limited. First PSU to sign MoU with NSDC

Your Company is also playing a proactive role to support the National SkillDevelopment Mission through active participation in the activities of Skill Council forMining Sector (SCMS) and providing Training and Recognition of Prior Learning (RPL) in allProjects.

Rewards & Recognition for HRD initiatives (2019-20):

• NMDC was conferred Best Supporting Organization Award in Quality Movement during33rd Annual Chapter Convention held during 28-29 August 2019 in Hyderabad.

NMDC has bagged Special Commendation Award in "Innovative TrainingPractices" category by ISTD.


Vigilance department had taken several initiatives during the year. Emphasis was laidon adequate checks and balances in the form of well-defined systems and procedures.Various programmes were conducted for awareness on vigilance matters for the employees ofthe Company. The vigilance functionaries at the projects have conducted regular trainingclasses for the employees on the vigilance matters. With a view of value addition andskill development of the executives of Vigilance Department they were nominated forvarious training/workshops being organized in India.

It has been ensured that the systems and procedures including the process of documenthandling maintenance of records etc. of the Vigilance Department is conforming to theQuality Management Systems as per ISO 9001:2015 Standards.

Vigilance Department in NMDC has upgraded its process and systems to ISO 9001:2015standards of Quality Management System (QMS). In this regard one agency viz. M/s VexilBusiness Process Services Private Limited Delhi was engaged for audit suggesting systemimprovement and assisting in obtaining certification. Accordingly after the SurveillanceAudit and necessary compliance on 7.01.2020 NMDC Vigilance Deptt. has been awarded ISO9001:2015 standards of Quality Management System (QMS) which will remain valid up to 5thFeb 2022.

During the year (April'2019 - March 2020) 70 nos. of surprise checks 82 nos. ofregular inspections and 2 nos. of CTE type inspection was conducted by VigilanceDepartment. Complaints received were taken up for investigation and necessary suggestionsfor system improvement/ disciplinary action wherever required was recommended. During theperiod 4 nos. of major penalties was imposed.

As part of implementation of "Leveraging of Technology for transparency" inall the transactions details of contracts concluded above Rs. 10 lakhs all works awardedon nomination basis single tender basis above Rs. 1 lakh information regarding billpayments to the contractors etc. are provided on the company's website. Efforts toencourage e-procurement e-tender & e-auction are being made continuously.

NMDC has adopted implementation of Integrity Pact since November 2007. As per thesuggestions given by Vigilance Department the threshold value has been decreased to 1.0Crore w.e.f. 07.09.2018 for both Procurement and Contracts as against the earlierthreshold limit of Rs. 20 crores in case of Civil works and Contracts and Rs. 10 crores incase of Procurement on approval of NMDC Board. The Integrity Pact has been entered into272 contracts with a value of Rs. 25069.00 Crores. All the contracts wherein theIntegrity Pact was to be signed as per the threshold limit was adhered to and more than90% of the total values of the contracts are covered under Integrity Pact.

A Quarterly meeting of Vigilance Officers in NMDC is being conducted regularly and thelast meeting was conducted on 4th & 5th Feb 2020.


As per the Action Plan surprise and regular checks were conducted besides study offiles. Irregularities and omissions under the provisions of the rules are identified andimprovements in the systems suggested wherever required. Based on the observations ofVigilance recoveries from the contractor's bills for not conforming to the contractualterms were suggested.

The initiatives/system improvements studies/suggestions/recommendations made during theperiod are briefed as below:-

SMS based Information System for concreting work

During various site inspections it was noticed that inadequate or lack of strictsupervision resulted in poor quality of work on account of using less than stipulatedreinforcement/ poor workmanship/ insufficient curing etc. In some cases cubes were alsonot taken. To have a better control over quality of concreting work and as a systemimprovement an SMS system for sending information regarding start of concreting work atsite has been introduced as the same was successfully implemented in Port Sector and DCI.Feasibility to use CCTV Cameras is also being explored.

Computer generated "Material Requisition Number" (MRN) for issue of Dieselfor Hired Vehicles

Implementation of computerized MRN for issue of diesel for hired vehicles in existingInventory Management System (IMS) done resulting in elimination of possiblemanipulations/overwriting in POL slips manual intervention excess drawal issues.

Reward Point Management System

The system was introduced in place of manually printed coupons which were given tocontract labourers for purchase of food items through co-operative stores. This preventedmanipulations in signature duplication/fake coupons submission etc.

Visitor Management System (VMS)

At one of the projects was not in use and instead manual mode of gate pass was beingissued. On vigilance intervention usage of VMS software was restarted and issue wasensured through the software only and is operational from October 2019 onwards.

Module for Hospital Management System (HMS)

To avoid issue of unaccounted medicines and irregularities in receipt & issue ofmedicines at Yashoda Aarogyavardhini Hospital at Donimalai on intervention of VigilanceDepartment new HMS has been ordered for the hospital on December 2019.

Review of CCTV Cameras installed

CCTV cameras have been installed at various sensitive locations in offices/plantpremises. Review of positions of the cameras time to time is done with a view to cover allsensitive areas and also to ensure working of CCTV cameras a committee is constituted andmade responsible for regular monitoring of the same.

Procurement of Medicines through Open Tender System

Procurement through Open Tender System was initiated in place of purchase frommanufacturer/Authorised Dealer against hospital price list to fulfil the annualrequirement for the Project hospitals. During the financial year (2018 - 19) against theestimated value of Rs. 128.42 lakhs actual procurement was made for Rs. 92.28 lakhsresulting in a saving of Rs. 36.14 lakhs to the Corporation and for the financial year(2019 -2020 till December) against the estimated value of Rs. 79.43 lakhs actualprocurement was made for Rs. 57.08 lakhs resulting in saving of Rs. 22.35 lakhs.

Engagement of hired vehicles

As suggested tendering process for engagement of hired vehicles in compliance with CVCguidelines was adopted at Donimalai Project.

Action plan to improve INTEGRITY INDEX of the Organization

was prepared and various initiatives were already implemented like composition ofInterview Board by including External Representative policy review & changes atregular intervals like review of Fraud Prevention Policy Banning of Business Policy etc.

Further the following are in the final stages of implementation like a) Implementationof ERP b) Audit of existing contract terms and conditions with a view to reducevulnerability for arbitration c) Policy changes based on exit interview etc.

Laboratory Information Management System

in Chemical Lab and Geology Department was implemented to improve transparency andavoid manual intervention while coding of samples being sent to Chemical Lab for analysis.

Improvement in Sampling activities at Loading Plant

System Improvement is done in the sampling activities at loading plant whereinannouncing the party name in the PA System has been discontinued and Digital DisplayMonitors have been installed at loading sites for knowing the exact status of wagonfilling on continuous basis for representative sampling.

Calibration of Belt Scale Weighers

Out of Vigilance intervention Calibration of belt scale weighers through externalagencies on monthly basis was agreed (previously monthly external calibration was done forloading plant belt scales only). Accordingly work order has been issued for all the beltscales. Further plant electrical department has purchased 06 Nos. of new belt scales forreplacing the old belt scales for better accuracy and precision in weighment andprocurement action has been taken up.

Recruitment and Promotion Policy of NMDC

Given the history of issues cropped up during past phases of recruitment and promotionsand in view of recommendations given by Vigilance Department NMDC Recruitment andPromotion Policy 2018 and the rules framed there under in the Company was approved by theCompetent Authority and put in place.

An amendment was also issued on 04.09.2019 to the NMDC Promotion Policy 2018.

"NMDC Fraud Prevention Policy'' was proposed for implementation since the year2013 but did not happen. It's been followed up vigorously and modified and made morerobust and will be implemented shortly with Board approval.

Mine Transport Surveillance System (MTSS)

Has been implemented to monitor production and despatches of Iron Ore in Kumaraswamyand Donimalai Projects of NMDC.

Strengthening of Online Complaint Handling facility

Incorporating additional features to authenticate the complainant was done and is madeavailable on NMDC website.

Installation of Weightometer

Suggestion for installation of weightometer on NMDC conveyor instead of the party'sconveyor at one of the projects for making the process of weighment of material dispatchedto parties/customers more authentic.

Online Submission of Certificate

System for online submission of certificate regarding award of contract on nominationbasis has been implemented.

Strengthening of Online Vigilance Clearance System

For further strengthening of Online Vigilance Clearance System certain modules wereintroduced like outside employment separation from the Company etc. in addition to theexisting modules such as Vigilance Clearance for HBA Deputation Superannuation etc.

Study of Estate Matters

Based on an elaborate and corrective study Vigilance department had submittedsuggestions for streamlining the Estate Matters so that valuable resources like MiningAreas Potential Mines (Green field areas) Boundaries etc. are not embroiled in legaltangle. In view of the Vigilance recommendations Domain experts were appointed for dealingwith matters pertaining to Estate in the organization and necessary action has beeninitiated in this regard.

Vigilance Awareness Week - 2019

To spread awareness among employees and general public Vigilance Awareness Week wasobserved from 28th October to 2nd November 2019 and various activities were organized. Inorder to create awareness among the employees text messages through SMS were sentregarding vigilance awareness and to take Integrity Pledge online. A link was provided onNMDC website for taking online Integrity Pledge.

During the Vigilance Awareness Week as desired by the Commission competitions wereconducted for school and college students by forming Integrity Club.

Competitions included Debate Panel Discussions

Poster Making Elocution and Essay Writing on topics like Integrity- a way of lifeEradicate corruption- Build a New India Moral Values and Ethics Importance of morals andethics in students etc. for inculcating greater awareness on prevention of corruption andanti-corruption measures.

Banners and Slogans related to Vigilance Awareness were displayed at various places inthe School/College premises during the entire Week. Banners & Slogans were alsodisplayed in prominent places in the organization for creating awareness. Apart from theabove competitions like Elocution and Quiz were held among the employees of NMDC.

The Week witnessed display of innovative ideas to spread awareness against corruptionand promote integrity as a way of life. Events like CANDLE MARCH with a theme "Betterto light a candle than curse the darkness" and "United against corruption"FORMATION OF CVC LOGO by School children's WALKATHON/AWARENESS WALK SIGNATURE CAMPAIGNin support of theme "Integrity - A way of Life" MOTIVATIONAL VIDEO SHOWFORMATION OF HUMAN CHAIN & RALLY GROUP SONG against corruption SKITS by SchoolChildren etc. in various places in states of Chhattisgarh Madhya Pradesh KarnatakaTelangana etc. were conducted by NMDC Projects/Offices. More than 10000 school/collegestudents and employees participated in the events conducted by NMDC during this week.

Bi-Annual Vigilance Conclave (5th to 7th Sep 2019)

A Three day Vigilance Conclave by Ministry of Steel and co-organized by NMDC Ltd. forofficials of CPSEs under Ministry of Steel to spread awareness regarding the basicprinciples and procedures to be followed while taking important administrative/commercialdecisions on procurements by way of addressing the concerns in the areas relating to theProcurement Tendering Vigilance Finance Arbitration Materials Management etc. Eminentspeakers addressed around 150 delegates from various disciplines from CPSEs like SAILNMDC MECON RINL MOIL MSTC FSNL and KIOCL. During the Vigilance Conclave deliberationswere made on public procurement and works contracts delays in finalization of billpayments Overview of GEM and GFR PIDPI/Complaint Handling mechanism a Workshop onResolving Disputes through Arbitration a Session on Cyber Forensic Audit was alsoincluded.

Rotation of Working

Rotation of Officials working in sensitive posts is being done on regular basis as perCVC guidelines.

Uploading of Works awarded

Uploading of Works awarded on nomination basis single tender basis above 10 lakhs onNMDC Portal is done on monthly basis as per the CVC guidelines.

Workshop on Contracts & Arbitration (6th &7th Feb'2020)

Workshop on Contracts & Arbitration (6th &7th Feb'2020) was conducted byVigilance department at Hyderabad wherein 70 executives from NMDC and 30 executives fromfew Hyderabad based PSUs like M/s BDL M/s Midhani and M/s ECIL attended. The topics onbasics of Contracts Pre-tender stage Post-tender stage Tender and Tender ScrutinyCommittee and Arbitration were covered during the workshop.


Pursuant to Section 134(5) of the Companies Act 2013 with respect to DirectorsResponsibility Statement it is hereby confirmed that:-

(a) in the preparation of the annual accounts for the financial year ended 31.03.2020the applicable accounting standards had been followed along with proper explanationrelating to material departures;

(b) the Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit and loss of the Company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis; and

(e) the Directors had laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and were operatingeffectively.

(f) the Directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.


The Independent Directors have given a declaration on meeting the criteria ofindependence as stipulated in Section 149(6) of the Companies Act 2013 and Regulation25(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 in theFY 2020-21.


All Directors are appointed by Govt. of India including fixation of their remuneration.


During the year under review 10 meetings of the Board were held. For further detailsreference may kindly be made to Corporate Governance Section of the Annual Report.


A long-term Strategic Management Plan (SMP) 'Vision 2025' has been formulated whichenvisages iron ore production capacity of 67 MTPA by 2021-22. This expansion plan includesbrownfield expansion of existing mines and developing greenfield mines in partnership withChhattisgarh Mineral Development Corporation.

A joint venture of NMDC & CMDC (NCL) is in process of starting operations fromDep-13 Iron Ore Mine in Bailadila Region. Government of Chhattisgarh has notified theallocation of Dep-4 to NMDC in Sep'19 for prospecting and mining operations.

The recent pandemic of Covid-19 & lockdowns across the country had impacted thedemand of steel in short to medium term. Most of the downstream industry were closed oroperated at low capacity. Under the impact of low demand & economic slow down acrossthe globe current operations & future plans of the various industry including iron& steel will be impacted severely. NMDC will also review its long plan based on thesituation that arise after reaching the new normal. The National Steel Policy hadenvisased to increase per capita steel consumption in the country to a level of 158 Kg byFY'31 from 61 Kg in 2015. India is on constant growth path in increasing per capita steelconsumtion and has reached to 74.6 kg in 2019 vis-a-vis world average of 229 Kg percapita. Weathering the shocks of current pandemic the Indian economy is now expected tostep on the higher growth trajectory. The wide range of continuing infrastructure projectscould support growth in steel demand to reach our envisased target of 158 Kg by FY'31 inthe long term.

In the financial year 2019-20 the Company has progressed significantly on variousactivities to enhance its production capacity and there is extensive progress in theconstruction of the fifth line in Screening Plant II is nearing completion Rapid WagonLoading System (RWLS-I) and New Screening Plant (SP-III) at BIOM Kirandul Complex areunder construction. Work on the 5th line in Screening Plant Dep-5 & up-gradation ofthe downhill conveyor system in BIOM Bacheli Complex is likely to commence in 2020-21.

To augment the evacuation capacity from Bailadila sector many projects & schemesare taken up like doubling of KK line Rowghat-Jagdalpur line Slurry Pipeline etc.Doubling of KK line is being executed by Railways as a deposit work. Section I Jagdalpurto Silakjhori 45.5 km of railway line was completed & opened for traffic. 48% of thesection II between Gidam to Silakjhori (52.73 Kms) is also completed. Overall progress is60.5% & project is likely to be completed by FY'23. The completion of this projectwill augment the evacuation capacity of Bailadila sector through Railway line from 28 MTPAto 40 MTPA.

Activities for Phase-1 of Slurry Pipe Line including 2 MTPA capacity Ore ProcessingPlant (OPP) at Bacheli 15 MTPA capacity Slurry Pipeline System (130 km) from Bacheli toNagarnar and 2 MTPA capacity Pellet Plant at Nagarnar has also been initiated. SiteLevelling work for Pellet Plant at Nagarnar & Ore processing plant at Bacheli has beenalmost completed. Other packages are also being awarded.

Further NMDC has been allocated with 2 Coal Blocks- Tokisud North & Rohne inJharkhand. NMDC will venture various mode of operations & start the operation of CoalMines in near future.

Besides the expansion plan the SMP also envisaged the introduction of systemicinterventions in six strategic transformation areas - Business OperationsSustainability Capital Projects Human Resource and IT. NMDC has implementedLicense-to-Operate (the computer-based model in which all the statutory approvals will bebrought under one umbrella). Implementation of Mines Transport Surveillance System(MTSS)-Weighbridge automation/Virtual Fencing/Geo Fencing/GPS/Proximity Warning Device fordumpers/CCTV Surveillance/Wireless Networking has been completed at Donimalai and will beimplemented across all Mines in a phased manner. Implementation of ERP across all MiningProjects and Steel Plant is in final stage of completion.

NMDC is publishing Sustainability Report as per the Global Reporting Initiative (GRI)Standards capturing initiatives taken by NMDC over the years in Economic Environmentaland Social aspects. NMDC has also completed study of Life Cycle Assessment of Iron Ore inFY'20. This study will provide opportunity to acess impact on resources energy andemissions on iron ore production including overall carbon footprint for downstreamindustries.


The following Directors ceased to be Directors on the Board of the Company:-

i) Dr. Narendra K. Nanda Director (Technical) 31.05.2019
ii) Dr. T.R.K. Rao Director (Commercial) 31.05.2019
iii) Shri Sandeep Tula Director (Personnel) 31.08.2019
iv) Shri Saraswati Prasad Govt. Nominee Director 16.03.2020
v) CA. Arun Kumar Srivastava Independent Director 12.11.2019
vi) Smt. Bhagwati Mahesh Baldewa Independent Director 12.11.2019
vii) Shri Pradip Bhargava Independent Director 26.11.2019
viii) Dr. Syamal Kumar Sarkar Independent Director 26.11.2019
ix) Shri S.M. Nigam Independent Director 26.11.2019

The following Directors were appointed on the Board of the Company:-

i) Shri Alok Kumar Mehta Director (Commercial) 01.06.2019
ii) Shri Sumit Deb Director (Personnel) 01.09.2019
iii) Shri D. Kuppuramu Independent Director 06.11.2019
iv) Shri Vijoy Kumar Singh Govt. Nominee Director 17.03.2020


Sl.No. Unit Statutory Auditors
1 Head Office R & D Center SIU & Consolidation M/s SAGAR & ASSOCIATES Chartered Accountants House No.6-3-244/5 Saradadevi Street Premnagar Hyderabad Telangana: 500 004
2 Kiradul Complex Bacheli Complex NISP Jagdalpur Vizag Office M/s AGASTI & ASSOCIATES Chartered Accountants Gurunanak Nagar Durg Chhatishgarh:- 491 001
3 Donimalai Complex M/s YOGANANDH & RAM LLP Chartered Accountants Third Floor Shri Narasimha Nilaya No. 263/1 Second Cross T. Mariappa Road Second Block Jayanagar Bengaluru Karnataka : 560 011
4 Panna Project M/s Amit OM & Co Chartered Accountants 2nd Floor Dr. Bajaj Complex 17/12 Tashkhand Margh-SP Next to PVR Campus Civil Line Allahabad-211 001(UP)

The Board places on record its deep appreciation for the valuable contribution made byDr. Narendra K. Nanda

Dr. T.R.K. Rao Shri Sandeep Tula Shri Saraswati Prasad CA. Arun Kumar SrivsatavaSmt. Bhagwati Mahesh Baldewa Shri Pradip Bhargava Dr. Syamal Kumar Sarkar and Shri S.M.Nigam during their tenure on the Board of the Company.


a. Statutory Auditors

On the advice of the Comptroller and Auditor General of India New Delhi your Companyappointed the following firms of Chartered Accountants as Statutory Auditors of theCompany for the year 2019-2020.

b. Cost Auditors

Tanmaya S Pradhan & Co

Cost Accountants

'SWASTHAN' Brooks Hill Sambalpur

Odisha- 768001

c. Secretarial Auditors

M/s D. Hanumanta Raju & Co.

Company Secretaries B-13 F1 P.S. Nagar Vijaynagar Colony Hyderabad - 500 057


All the provisions of the RTI Act 2005 are being complied with by the Company. In orderto ensure timely disposal of RTI applications PlOs have been appointed in each unit ofNMDC's units. A close monitoring of the RTI applications received is done to ensure thatthe replies are sent in time.

The details of RTI applications received in Head Office and all the Units of theCompany during the period 01.04.2019 to 31.03.2020 are as follows:

Month No of Applications received Information Provided Rejected
Pending (as on 01.04.2019) 04 - -
April 2019 27 15 01
May 2019 13 19 04
June 2019 21 03 01
July 2019 16 25 01
August 2019 10 11 01
September 2019 12 13 03
October 2019 14 09 02
November 2019 22 14 03
December 2019 18 17 03
January 2020 14 15 -
February 2020 14 17 01
March 2020 08 05 01
TOTAL (received during the year 2019-20) 189 163 21

05-Requests pending as on 31.03.2020 04-Applications have been transferred to otherCPIOs




The details of awards received by the Company are as follows:-

i) NMDC received the prestigious S&P PLATTS Global Metals Award 2019 under CSRcategory organized by S&P PLATTS at London;

ii) NMDC received HSE (Health Safety & Environment) Excellence Award 2019 inMining Category during HSE Summit organized by Synnex Group Mumbai ;

iii) NMDC received "Innovative Stakeholders Interface" Award under SCOPECorporate Excellence Awards 2019 organized by SCOPE New Delhi ;

iv) Hon'ble Vice President of India Shri M. Venkaiah Naidu presented NMDC with the"Best Supporting Organization to Quality Circle Movement" award at the 33rdAnnual Chapter Convention organized by Quality Circle Forum of India (QCFI) Hyderabad.NMDC bagged 24 gold and one silver award;

v) NMDC received the "Rajabhasha Kirti Awards" second prize amongstUndertakings in 'C' region on the occasion of Hindi day ;

vi) NMDC received the Rajbhasha Shield (First Prize) and also received First Prize forHindi House Journal of NMDC "Khanij Bharati" from Town Official Implementationcommittee (Undertakings) Hyderabad/Secunderabad;

vii) NMDC received an award for innovative exhibiting Pavillion under large stallcategory in International Mining Equipment Mineral & Metal Exhibition (IME) 2019 atKolkata ;

viii) Kumaraswamy Iron Ore Mine (KIOM) bagged "First Prize" in the Statelevel Overall Performance of Zone-IV in the Mine Safety Observance Week-2019 atChitradurga of Karnataka;

ix) Kumaraswamy Iron Ore Mine has bagged 18th Annual Greentech Safety Winner Award atNew Delhi;

x) NMDC bagged five awards at the 41st All India Public Relations Conference organizedby Public Relations Society of India (PRSI) at Hyderabad;

xi) META SIP QC team of R&D Centre received "PAR EXCELLENCE AWARD" inNCQC-2019 at Varanasi ;

xii) Shri N. Baijendra Kumar IAS CMD NMDC was presented with Business LeadershipAward 2020 and NMDC the Best Performer in Financial CSR in Infrastructure Developmentfrom Shri Arjun Ram Meghwal Union Minister State Ministry of Parliamentary AffairsGovernment of India during Seventh edition of the Governance Now PSU Awards at New Delhi;

xiii) NMDC bagged 8 Corporate communication Excellence Awards 2020 during 14th globalcommunication conclave by Public Relations Council of India (PRCI) at Bangalore.


NMDC being a PSU the guidelines of Central Vigilance Commission (CVC) are applicablewhich provides adequate safeguard against victimization of the employees. The Board ofDirectors at its 451st meeting held on 20.09.2012 approved the internal Whistle BlowerPolicy of NMDC. NMDC has effectively implemented its internal Whistle Blower Policy underCVO NMDC the designated Nodal Officer for the purpose. However no complaint has beenreceived by the Company under internal Whistle Blower Mechanism for the year under review.In order to spread awareness about Whistle Blower Policy regular awareness programmeswere conducted including the various programmes conducted during the Vigilance AwarenessWeek 2019 at Projects and Head Office.




The Department of Investment and Public Asset Management ("DIPAM") alongwith Nippon Life India Asset Management Limited (formerly Reliance Nippon Life AssetManagement Limited) as the asset management company of the Scheme ("AMC") hasformulated a sixth Further Fund Offer ("FFO 6") of the Scheme which has beenoffered to the public for subscription in accordance with the SEBI (Mutual Funds)Regulations 1996 and other applicable laws rules and regulations as framed from time totime.

In regard to the FFO 6 and as informed by Ministry of Steel Govt. of India thePresident of India acting through the Ministry of Steel Government of India has sold80582119 (2.63%) equity shares of NMDC to the AMC @ Rs.114.72 per share and raised anaggregate net amount of Rs. 9244396643.07 (Rs. 924. 44 crores). The date ofdisinvestment is 3rd February 2020. No part of the disinvestment proceeds of Government ofIndia in the equity shares of NMDC accrued to the Company.

Pre and Post Shareholding of the Promoter:

Promoter holding Prior to disinvestment No. of Shares disinvested After disinvestment Value
No. of Shares 2213035712 80582119 2132453593 Rs. 9244396643.07 (80582119 equity shares for Rs. 114.72 per share of face value of Rs. 1 each)
% 72.28 2.63 69.65


NMDC being a Government Company the terms and conditions of appointment andremuneration of Functional Directors and Independent Directors are determined by theGovernment through its administrative Ministry Ministry of Steel.

In terms of notification dated 5th June 2015 issued by Ministry of Corporate AffairsGovt. of India Government Companies have been exempted from applicability of some of theprovisions /sections of the Companies Act 2013 inter alia Sub-sections (2) (3) & (4)of Section 178 regarding appointment performance evaluation and remuneration.


The Board at its 442nd meeting held on 19.01.2012 has approved the Risk Assessment andRisk Mitigation Policy/Enterprise Risk Management (ERM) of the Company. Accordingly theCompany has constituted a Board level

Risk Management Committee comprising of Functional Directors (excluding CMD). TheCompany as a part of its current Risk Management Policy has identified top 15 Risks ThatMatters (RTMs) and documented Mitigation Plan/Strategy for the same.

During the year under review two meetings of the Board level Risk Management Committeewere held.


The Board of Directors has approved Dividend Distribution Policy which has beenuploaded in the website of the company under the link Policy.pdf.


NMDC is embarking on a digital transformation journey which is in line with the GOIDigital India Initiative. As part of this Journey SAP has been selected as the ERP Toolthat will form the backbone for NMDC's business operations. This project has beenchristened as "Project Kalpataru" and will address NMDC's core requirement ofhaving a strong ERP backbone by fully integrating the business solutions encompassing allthe functions of the organization. This platform apart from improving productivity andoperational efficiency will also enable the organization to use solutions like Mobilityand Analytics to provide deeper insights into the business operations and equip NMDC toaddress the business challenges in a proactive manner.

As part of the Project implementation As-Is Study covering all project locations wasconducted Business Blueprint has been finalized taking into consideration the leadingpractices that are followed in India and Globally to bring "One NMDC" wayof operations. Go-Live is planned in Nov 2020.

Other Digital Initiatives like implementation of Fleet Management System GIS Solutionwhich will be integrated with ERP have also been initiated.


A Report on Management discussions and Analysis as required in terms of Regulation 34of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 is at Annexure-I.



Report on Corporate Governance is at Annexure-III


The extract of Annual Return as provided under SubSection (3) of Section 92 read withRule 12(1) of the Companies (Management & Administration) Rules 2014 is at Annexure-IV.The extract is also placed on the website of the company under the link Information/Default.aspx


In compliance with Regulation 34 of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 Business Responsibility Report (BRR) is at Annexure-V.


Secretarial Audit Report in Form No.MR-3 pursuant to Section 204(1) of the CompaniesAct 2013 and Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 is at Annexure-VI.


Report on compliance with principles of Global Compact is at Annexure-VII.



Report in terms of the Companies (Corporate Social Responsibility Policy) Rules 2014is at Annexure-IX.


Details to be provided in the Annual Report in terms of recommendations made by theCommittee on Papers laid on the Table (Rajya Sabha) in its 150th Report is enclosed at Annexure-X.


Your Directors gratefully acknowledge the support cooperation and guidance receivedfrom the Ministry of Steel Ministry of Mines and Ministry of Forests & Environmentand other Departments of Government of India and the State Governments of Andhra PradeshChhattisgarh Karnataka Madhya Pradesh Jharkhand and Telangana.

Your Directors acknowledge the support extended by the valued and esteemedinternational and domestic customers Shareholders stakeholders MMTC Chennai Port TrustVisakhapatnam Port Trust Railways and other Departments of the Central and StateGovernments. We believe that our long-term success is dependant on our domestic customerrelationship and responsiveness.

We will do everything possible to provide our customers better timely and value addedservices.

The success of your Company is due to the commitment and dedicated efforts of themanagers and employees at all levels. Your Directors place on record their appreciationand also acknowledge the support and co-operation of All India NMDC Workers' Federationand their members for the smooth functioning of the Company's operations.

Place : Hyderabad N. BAIJENDRA KUMAR IAS
Date : 30th July 2020 Chairman-cum-Managing Director