The Directors are pleased to present the 65* Annual Report on the performance of yourCompany, together with the Audit Report andFinancial Statements for the year ended 31 * March2023 and the Report thereon by the Comptrollerand Auditor General of India.
1.0 (A) STATE OF COMPANY AFFAIRS &PERFORMANCE HIGHLIGHTS
During the year under review, the Company has recorded turnover of Rs.l 7,667 crores, achievedProfit Before Tax (PBT) of Rs. 7,637 crores andachieved Profit after Tax (PAT) of Rs.5,529 crores.
The major performance highlights are summarized as under:-
• The company achieved production of 40.82 MTand sales of 38.22 MT.
• Turnover for the year under review was
Rs.l 7,667 crores as against Rs.25,965 crores in the previous financial year 2021 -22 - adecrease of 32%.
• Profit before tax (PBT) from continuingoperations (before exceptional income) was Rs.
6,399 crores compared to Rs. 13,022 crores in the previous financial year 2021-22- adecrease of 51 %.
• Profit before tax (PBT) after exceptional incomewas Rs. 7,637 crores compared to Rs. 13,022crores in the previous financial year 2021 -22- adecrease of 41 %.
• Profit after tax (PAT) was Rs.5,529 crorescompared to Rs.9,448 crores in the previousfinancial year 2021 -22 - an increase of 41%.
• Net worth of the Company stood at Rs.22,332crores as on 31.03.2023 - 25% higher than theprevious financial year 2021-22 to Rs. 17,875crore.
• The Company declared an Interim Dividend ofRs.3.75 per share and Final Dividend of Rs.
2.85 per share for F.Y 2022-23.
• Capital expenditure of Rs.3,747 crore (includingRs.2,283 crore for Nagarnar Steel Plant) hasbeen incurred during the year under review.
• The demerger scheme of arrangement betweenNMDC Limited ("Demerged Company" or the"Company") and NMDC Steel Limited (NSL)
{"Resulting Company") and their respective shareholders and creditors (the "Scheme")pursuant to the provisions of Sections 230-232 of the Companies Act, 2013 ("Ad"),other applicable provisions and rules thereofthereunder (hereinafter referred to as the"Scheme"), involving demerger of NMDC Iron& Steel Plant Business Undertaking("Demerged Undertaking" or " NISP") fromDemerged Company to the ResultingCompany has been duly sanctioned by theMinistry of Corporate Affairs ("MCA") vide itsorder dated 6thOctober 2022 ("Order"). TheCompany received the Order on 11thOctober2022 and filed the same with the concernedRegistrar of Companies on 13* October2022. Hence, the Scheme is operative from13thOctober 2022 (Effective Date). TheAppointed Date of the Scheme is 1** April2021.
(B) Scheme of Arrangement between NMDC Limited and NMDC Steel Limited and theirrespective shareholders and creditors(Demerger of NISP).
The Board of Directors at its 532ndmeeting has inferaliaaccorded in-principle approval fordemerger of NMDC Iron & Steel Plant (NISP),Nagarnar.
A 100% subsidiary company by the name NMDC Steel Ltd. having its registered office at Nagarnar,CG was incorporated on 02.01.2015 as a
Private Limited Company. The transfer of NISP was envisaged of a scheme of demerger intoNMDC Steel Ltd.
The Board of Directors at its 539'hmeeting held on 13.07.2021 inter alia, approved pursuant tothe provisions of Section 230 to 232 of theCompanies Act, 2013 and Companies(Compromises, Arrangements andAmalgamations) Rules, 2016 and otherapplicable provisions, if any, of the CompaniesAct, 2013, and / or any statutory modification(s)or re-enactment thereof to the Scheme ofArrangement between the Company and NMDCSteel Limited and their respective creditors andshareholders, entailinginfer-aliademerger of theDemerged Undertaking (as defined under theScheme) of the Company into ResultingCompany on a going concern basis, as per theterms and conditions mentioned in the Scheme.
Rationale for the Scheme of Arrangement
Government of India has charted a road map to augment India's steel production to 300 MTPA by2025. To fulfill this vision, green-field steel plantsare being promoted through Special PurposeVehicles("SPVs")in mineral rich states ofChhattisgarh, Jharkhand, Karnataka andOdisha. It has been envisaged that the SPY beingset up at these states would act as a facilitatorand developer for the steel plant. It wouldacquire the required land, obtain statutoryclearances for setting up the plant, organize
water & power allocation for the site, along with dedicated raw material supply agreement. Oncompletion of the above activities, the SPV wouldinvite for suitable investor/s, who wouldconstruct, develop and operate the steel plant.
As part of expansion, value addition and forward integration programme, and also in consonancewith the desire of the Government of India andGovernment of Chattisgarh, NMDC Limited issetting up a 3 MTPA capacity Greenfieldintegrated steel plant("NMDC Iron & SteelPlant"or"NISP")at Nagarnar, located 16 kmfrom Jagdalpur in Chhattisgarh State.
The decision to construct the NISP was taken keeping in view with linkage with iron orereserves and availability of investable surplus.NISP has progressed significantly further than theother Steel SPVs. The only difference is that NISPis being developed and constructed withinNMDC Limited as opposed to being developedin an SPV. Also, NMDC Vision 2025, whilstmentioning forward integration has specificallystated that its role would be that of a developerfor steel plants and at suitable time inviteinvestors to commission and operate the plants.NMDC is therefore considering proposed schemeto add more value to Company's stakeholders bydemerging NISP into separate company andsubsequently inviting investor.
To this effect, in October 2020, the Cabinet Committee on Economic Affairs gave its 'inprinciple' approval to the demerger of NISP fromNMDC Limited and strategic disinvestment of theNMDC Steel Limited by selling entireGovernment of India stake in the NMDC SteelLimited to a strategic buyer.
1 Accordingly, to achieve the above objective,the Board of Directors of the NMDC Limiteddecided to make requisite applicationsand/or petitions before the Ministry ofCorporate Affairs, Government of Indiaunder Sections 230 to 232 of the 2013 Act(hereinafter defined) and other applicableprovisions for the sanction of the Scheme.
2 Joint Petition dated 18.01.2022 betweenNMDC Ltd., (Applicant / DemergedCompany) and NMDC Steel Ltd. (Applicant /
Resulting Company) was filed before the Ministry of Corporate Affairs, Govt, of Indiavide File No.24/l/2022-CL-lll u/s 230 - 232of the Companies Act, 2013 read with Govt,of India, Notification No.GSR.582(E) dated13.06.2017. Pursuant to an application bythe Authorized Signatories of both thecompanies.
3. The Demerged Company M/s NMDC Limited
and Resulting Company M/s NMDC Steel Limited
broadly prayed for relief (s) as detailed below: -
(i) To give directions for convening the meetingof the equity shareholders of the DemergedCompany, to consider and, if though fit, toapprove, with or without modifications(s). TheScheme of Arrangement between NMDC Ltd.and NMDC Steel Ltd. and their respectiveshareholders and creditors (the Scheme)
(ii) To dispense with the requirement ofconvening the meeting of secured creditors ofthe Demerged Company
(ii) To give directions for convening the meetingof the unsecured creditors of the DemergedCompany to consider and, if thought fit, toapprove, with or without modifications(s),
(iii) To dispense with the requirement ofconvening the meeting of equity shareholdersof Resulting Company.
(iv) To dispense with the requirement ofconvening the meeting of the unsecuredcreditors of the Resulting Company.
(v) Directing issuance of notice of meetings ofequity sharehodlers and unsecured creditorsof the Demerged Company.
(vi) Directing publications of advertisem*nt of thenotices of the meeting of the equityshareholders and unsecured creditors of theDemerged Company in the newspapersnamely Times of India (English Edition),
Dainik Bhaskar (Hindi Edition) and Eenadu (Telugu Edition)
(vii) Directing service of Notice of the applicationon the Regional Director (South East Region),Regional Director (North Western Region)Registrar of Companies, Hyderabad,
Registrar of Companies, Chhattisgarh and Jurisdictional Income Tax Department.
4. MCA after considering the prayers andsubmissions made by the Resulting Company,directed that the meeting of equityshareholders of the Resulting Company isdispensed with since the Resulting Companyhas furnished the requisite consent affidavit(s)of all the equity shareholders.
5. The Demerged Company submitted that therewas only one secured creditor as on
30.09.2021 in the name of State Bank ofIndia and the said Bank has furnished itsconsent affidavit for the proposed scheme.Hence, the meeting of secured creditor of theDemerged Company was also dispensed.
6. The Resulting Company submitted acertificate from an independent CharteredAccountant stating that there are no/nilsecured creditor as on 30.09.2021. Withregard to the unsecured creditor, theResulting Company has furnished a certificatefrom an independent Chartered Accountantstating that there are two unsecured creditorsas on 30.09.2021 and both the unsecuredcreditors of the Resulting Company havefurnished their consent affidavit to thisministry. Hence, the meeting of the securedand unsecured creditors of the ResultingCompany was also dispensed.
7. Pursuant to the Ministry of Corporate Affairs
Order dated 11.04.2022, a meeting of the Equity Shareholders of the DemergedCompany was convened on 07.06.2022 forconsidering the Scheme of Arrangement andSmt. Rasika Chaube, Additional Secretary,Ministry of Steel, Government of India wasappointed as the Chairperson of the EquityShareholders meeting. Due to unforeseencirc*mstances (unavailability of Chairperson)and due to unavailability of quorum, themeeting was adjourned to 28.06.2022.
8. Pursuant to the Ministry of Corporate AffairsOrder dated 11.04.2022, a meeting of theunsecured creditors of the DemergedCompany whose debt is of a value more thanrupees one (1) crore as on 30.09.2021 wasconvened on 07.06.2022 for considering theScheme of Arrangement. Smt. RasikaChaube, Additional Secretary, Ministry ofSteel, Government of India was appointed asthe Chairperson of the unsecured creditorsmeeting. The meeting was duly convened on
28.06.2022 for seeking the approval of theunsecured creditors in the matter of Schemeof Arrangement.
9. The Demerged Company, NMDC Ltd.
published the newspaper advertisem*nt regarding the adjournment of the meetings ofEquity Shareholders and Unsecured Creditorsin Times of India, Eenadu and DainikBhaskar, stating the adjourned meetings to be
held on Tuesday, 28.06.2022 at the same time and through the same means (i.e. VC /OAVM).
10. The meeting was convened on 28.6.22 forapproval of the shareholders and UnsecuredCreditors of the Company and the resolutionof demerger was approved by both with therequisite majority.
11. Chairperson of the meeting submitted thereport as required under law to Ministry ofCorporate Affairs, Government of India on 5thJuly, 2022 being the outcome of the meeting.
12. The Second Motion Application wasprepared and all the annexures to theapplication and petition were filed before thedue date 12.7.22.
13. The hearing in the demerger matter wasfixed on 23.08.2022 and vide letter dated
01.08.2022, the petitioner companies wereinformed about fixation of the date of thehearing in the matter and also directed to thepetitioner companies to publish the notice ofhearing in the newspaper in terms of Rule 16of the Companies (Compromises,Arrangement and Amalgamation) Rules,
2016 and furnish a compliance report to this ministry. Further, it was also observed fromthe details of voting results of equityshareholders' meeting along with theScrutinizers with the Scrutinizer's Report whichwas submitted to the Stock Exchanges on
30.06.2022 that there are 6,06,187 no. ofequity shareholder as on the cutoff date i.e.
29.04.2022. However, as per the emailconfirmation for sending the individual noticeto the equity shareholders, the NSDL hadconfirmed that email communication wassent to 5,79,482 no. of equity shareholderson 05.05.2022. Hence, a clarification wasalso sought from the petitioner companies inthe aforesaid letter dated 01.08.2022regarding actual number of equityshareholders as on the cut-off date.
14. Thereafter, the petitioner companies videletter dated 10.08.2022 clarified that thetotal number of equity shareholders of theDemerged Company as on the cut-off date
was 6,06,187 which included 26,705 shareholders without email id. Therefore, theemail communication was sent only to5,79,482 shareholders, who were registeredon NSDL/the depository through emailaddress. Thereafter, this ministry also soughtthe comments of the petitioner companies asto why the individual notices were not issuedto the 26,705 equity shareholders by speedpost/ registered post etc. for convening themeeting of equity shareholders. The petitionercompanies informed that notices could not besent to 26705 equity shareholders of theDemerged Company as their email addresswere not registered with the DemergedCompany. However, the notice of the meetingof equity shareholders was duly published inthe newspaper on 05.05.2022 and the saidnotice clearly states that the members will beprovided with the facility to attend and vote atthe meeting through VC/OAVM through the,NSDL evoting system.
15. MCA vide its orders dated 06.10.2022sanctioned the Scheme of Arrangement ofM/s NMDC Limited (Demerged Company)and M/s NMDC Steel Limited (ResultingCompany) under section 230-232 of theCompanies Act, 2013. The Scheme shall bebinding on the shareholders and creditors ofthe Demerged Company and ResultingCompany and all concerned with effect fromthe appointed date i.e. 01.04.2021.
16 The broad contours of the scheme of demerger are briefly outlined as under:-
• Appointed Date:April 01, 2021("MCA");
• Effective Date:13thOctober, 2022
• Transfer of Demerged Undertaking:
Under the Scheme, the NMDC Iron & Steel Plant at Nagarnar, Chhattisgarh("Demerged Undertaking")was demergedfrom NMDC Limited("NMDC")into NMDCSteel Limited("NSL"),which was earlier awholly owned Subsidiary of NMDC;
• Transfer of Assets and Liabilities:All assetsand liabilities of the Demerged Undertaking,except certain assets/liabilities as specifiedunder the Scheme, were transferred to NSL at
book value appearing in accounts of NMDC on the Appointed Date;
• Consideration:As a consideration fortransfer of Demerged Undertaking to NSL,NSL without any further application, act,instrument or deed, issued and allotted to allthe equity shareholders of NMDC, whosenames appear in the register of members ason the Record Date (defined below), 1 (One)equity share of NSL of INR 10 each fully paid-up for every 1 (One) equity shares held inNMDC of INR 1 each fully paid-up. No cashconsideration was paid to NMDC on accountof the transfer of Demerged Undertaking andrelated assets / liabilities. Accordingly,demerger of the Demerged Undertaking fromNMDC into NSL was tax neutral on NMDC asNMDC did not receive any cashconsideration;
• Record Date:28thOctober, 2022
• Increase in Authorized Share Capital:
Upon the Scheme becoming effective, the authorized share capital of NSL automaticallystood increased to INR 30,00,00,00,000(Indian Rupees Three Thousand Crores);
•Cancellation of existing shares of NSL:All
the existing shares of NSL, currently held by NMDC, were cancelled;
• Mirror Shareholding:After the Schemebecomes effective, the shareholding of NSLwill 'mirror' that of NMDC; Accordingly, uponthe scheme being effective, the issued,subscribed and fully paid-up equity sharecapital of the resulting company, NMDC SteelLtd. shall be 293,06,05,850 equity shares ofINR 10/- each to reflect the same / equalnumber of equity shares as NMDC andmirror shareholding pre the proposeddemerger.
• Listing:The new shares of NSL which wereissued and allotted to the shareholders ofNMDC were listed on BSE Limited, NationalStock Exchange of India Limited and CalcuttaStock Exchange Limited, after obtaining therequisite approvals;
•Employees:All staff / workmen / employeesengaged or employed in relation to
Demerged Undertaking as identified by the board of NMDC shall be deemed to havebecome staff / workmen / employees of NSLfrom the Appointed Date;
* Shared Assets:NMDC and NSL shall enterinto shared services agreements and longterm supply agreement, as may be necessary,on terms and conditions that may be agreedbetween the NMDC and NSL and onpayment of consideration on an arm's lengthbasis and which is in the ordinary course ofbusiness;
* Costs, Charges and Expenses:All costs,charges, taxes including duties, levies and allother expenses, if any of NMDC and NSL,arising out of or incurred in connection withimplementing this Scheme, shall be borne byNMDC;
* Conduct of Business:From the AppointedDate and up to the Effective Date, NMDCshall be deemed to have been carrying onand shall carry on business and activities withrespect to the Demerged Undertaking, forand on account of, and in trust for NSL.
The Scheme of Arrangement was filed with
National Stock Exchange of India Ltd, BSE Ltd
and The Calcutta Stock Exchange Ltd.
17. Copy of the orders were received on
11.10.2022 by the NMDC Steel Ltd andNMDC Ltd. The Board of NMDC Ltd. on
13.10.2022 took on record the ordersreceived from MCA. The Record Date being
28.10.2022, List of eligible shareholders wasobtained from NSDL and CDSL on
29.10.2022.
18. Subsequently, the Board of NMDC Steel Ltd.on 08.11.2022 passed a resolution forallotment of equity shares subject to theconditions that approval of the Ministry ofSteel, Govt, of India is mandatory as theincrease in the Authorized Share Capital ofthe Company requires assent of the Presidentof India.
19. NMDC Steel Ltd. vide its letter dated
09.11.2022 formally applied to the Ministryof Steel seeking approval for increase in
Authorized Share Capital and completing the other formalities for credit of shares to theshareholders of NMDC Steel Ltd. as per theRecord Date 28.10.2022.
20. Ministry of Steel has in turn approachedDepartment of Investment and Public AssetManagement (DIPAM), Govt, of India,
Ministry of Finance vide their DO letter No.S-28016/1/2020-NMDC dated 18.11.2022 for enhancement of Authorized Share Capitaland Paid-up Share Capital of NMDC SteelLtd. upon its demerger from NMDC Ltd.DIPAM vide its letter dated 24.11.2022 havegave consent for the request to Ministry ofSteel. Ministry of Steel vide its letter dated
01.12.2022 gave its consent for the requestof enhancement of Authorized Share Capitaland Paid-up Share Capital of NMDC SteelLtd. upon its demerger from NMDC Ltd.
21. Corporate Actions for credit of shares wastaken up by NMDC Steel Ltd. with NSDL andCDSL on 05.12.2022. Physical sharecertificates, along with failed records and IEPFrecords was completed on 10.12.2022. On
31.12.2022, in-principle approval wasreceived from Bombay Stock Exchange. On
06.01.2023, in-principle approval wasreceived from National Stock Exchange. On
13.01.2023, in-principle approval wasreceived from Calcutta Stock Exchange. On
19.01.2023, SEBI approval under SecuritiesContract Regulations 19(2}(b) was received.
On 27.01.2023, Final Listing Application was made to BSE, NSE and CSE.
22. BSE vide its approval dated 16.02.2023 interalia, gave the approval for the listing of2,93,06,05,850 equity shares of Rs.10/-each and stated that with respect to thevarious letters and email resting with us as onFebruary 16, 2023, in informing that effectivefrom Monday, February 20, 2023, the equityshares of NMDC Steel Ltd. will be listed onthe Exchange under Rule 19(2)(b) ofSCRR,1957 and Trading Members of theBombay Stock Exchange will be permitted todo business in the equity shares of NMDCSteel Ltd. Vide its Notice No.20230216-3dated February 16, 2023, issued in thisregard to the Trading Members of theExchange.
23. National Stock Exchange pursuant ofRegulation 3.1.1 of the National StockExchange (Capital Market) TradingRegulations Part A, notified that the list ofsecurities further admitted to dealings on theNational Stock Exchange (Capital Marketsegment) with effect from February 20, 2023and the designated security codes. Pursuantto Regulation 2.5.5 of the National StockExchange (Capital Market) TradingRegulations Part A, it was notified that therespective lot sizes in respect of securitiesabove shall be as specified.
24. Calcutta Stock Exchange vide its Ref NoCSE/LD/157762023 dated 17.02.2023 interalia, gave the approval for the listing of2,93,06,05,850 equity shares of Rs.l 0/-each.
(B) Impact of the Hon'ble Supreme Court of India Judgement with reference to theWrit Petition (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 tothe Writ Petition (Civil) No.l 14/2014 dated
02.08.2017 on NMDC. However, in case it isfound applicable to NMDC at a later date, itmay impact the profits of the Company.Meanwhile, the Bailadila Projects of NMDChave received the Show Cause Notices dated
31.07.2018 from District CollectorDantewada as to why NMDC should not beasked to deposit an amount of Rs.7,241.35crores as compensation as calculated byCollector based on the above judgement.NMDC has been asked to submit its responseby 31.08.2018. As per the legal opinionreceived, the above compensation is notapplicable to NMDC and hence NMDC willseek legal recourse and contest before theCollector, Dantewada and other appropriateauthorities. The company has contested theShow Cause Notice with District collector,South Bastar, Dantewada.
ii) On 26.09.2019, State Government issuedrevised show cause notices mentioningreassessed penalties for an amount of Rs.
1623.44 Crores. In this regard, once again,NMDC Ltd. did not accept the penaltiesimposed by the revised show cause notices.
iii) Collector - Dantewada issued final demandnotices on 15.11.2019 for an amount of Rs.
1390.03 Crores and Rs. 233.41 Crorestowards EC Capacity violation and proposedproduction violation as per approved MiningPlan / Scheme respectively, i.e. total Rs.
1623.44 Crores.
(a) NMDC deposited an amount of Rs. 600Crores on 10.12.2019 under protest to theChhattisgarh State Govt.,
(b) NMDC filed two Writ Petitions (Civil), beingNo. WPC/612/2020 and WPC/616/2020challenging validity of demand notices dated15/11/2019 on the allegation of extractionof iron ore in excess to the environmentalclearance capacity during 2000-2017, havebeen filed at Bilaspur High Court, C.G. on
22.01.2020. The following reliefs have beensought from the Hon'ble High Court -
• to issue a writ of certiorari or any otherappropriate writ order or direction, declaringthe levy of penalty and compensation videimpugned demand notice dated 15-11 -2019as illegal, without jurisdiction and voilative ofArticle 19(1 )(g) and Article 246 of theConstitution of India.
• to allow the present writ petition by settingaside the impugned notice dated
15/11 /2019 for demand of penalty and compensation towards excess production overthe Environment Clearance Capacities.
• any other relief as deem fit and proper byHon'ble High Court in the facts andcirc*mstances of the petition may kindly bepassed.
(c) When the matter was listed for hearing on
19.02.2020, the Hon'ble Court after hearingboth counsels directed as under:-
• As prayed, list both the cases on 12* March,
• Considering the fact that the petitioner has
already deposited more than 600 crore rupees pursuant to the demand notice made,no coercive step further shall be takenagainst the petitioner till 12thMarch, 2020.
* The respondents are directed to produce thestatistics as regards the production of thepetitioner exceeding the capacity on 12thMarch, 2020.
iv) A revision application No. 12/(01 J/2020/RC-II challenging validity of demand noticesdated 15/11/2019 on the allegation ofextraction of iron ore in excess to theproposed production quantity as perapproved Mining Plan / Scheme during2000-2017, has been filed before Hon'bleMines Tribunal, Ministry of Mines, Govt, ofIndia, New Delhi on 24.01.2020. Thefollowing prayers have been made in therevision application -
* to set aside the demand of penalties, towardsthe alleged excess production above theproposed production in the approved MiningPlan / Scheme, since the same is withoutjurisdiction, illegal, arbitrary, violative ofprinciples of natural justice and ultravires theprovisions of MMDR Act - 1957;
* pass such other orders as Hon'ble Tribunal
deems fit under the facts and circ*mstances of the case, in the interest of justice and in thepublic interest.
NMDC is pursuing the matter.
(C) Impact of Covid-19 Pandemic
(a) Production
The production performance of NMDC Ltd. during the FY 2022-23 was not impacted dueto Covid-19 as the company has takenadequate precautions to ensure safely of theemployees and workers. The company hasundertaken an elaborate exercise ofadministering vaccines including Boosterdoses to all our eligible employees as per theguidelines of Ministry of Health & FamilyWelfare.
(b) Commercial
The impact of Covid-19 Pandemic was negligent and NMDC has achieved its secondbest physical performance in FY'23 byproducing 40.82 Mn T.
(c) Finance
The COVID-19 had not impacted the operations of the company during the FY2022-23.
2.0 PHYSICAL PERFORMANCE 2.1 Production | |||||||||||
Product | Achievement | Percentage of change | |||||||||
2021-2022 | 2022-2023 | ||||||||||
Iron Ore (Million tonnes) | 42.19 | 40.82 | (-) | 3% | |||||||
Diamond (Carats) | 0.00 | 0.00 | - | ||||||||
Pellets (Tonnes) | 1,82,299 | 2,02,330 | (+)11 % | ||||||||
3.0 SALES OF IRON ORE | |||||||||||
Physical (in Million Tones) | %of | Value (Rs. in crore) | %of | ||||||||
Particulars | Achievement | ehanae | Achievement | change | |||||||
2021-2022 | 2022-2023 | 2021-2022 | 2022-2023 | ||||||||
Domestic | 40.67 | 38.22 | (-J6.02 % | 25,620.53 | 17,447.39 | (-)31.90% | |||||
Export through MMTC | 0.00 | 0.00 | -% | 9.19 | - | - | |||||
Total Sales | 40.67 | 38.22 | (-)6.02% | 25,629.72 | 17,447.39 | (-)31.93 % | |||||
3.1 Other Sales | |||||||||||
Achievement | |||||||||||
Particulars | |||||||||||
2021-2022 | 2022-2023 | ||||||||||
a) Diamond | |||||||||||
Sales (carats) | 25,219 | - | |||||||||
Value (Rs. in crore) | 62.93 | - | |||||||||
b) Sponge Iron | |||||||||||
Sales (tonnes) | - | - | |||||||||
Value (Rs. in crore) | - | - | |||||||||
c) Wind Power | |||||||||||
Sales (lakh units) | 1.47 | 1.79 | |||||||||
Value (Rs. in crore) | 4.99 | 6.08 | |||||||||
d) Pellet (In WMT) | |||||||||||
Sales (In WMT) | 1,96,972 | 1,88,988 | |||||||||
Value (Rs. in crore) | 222.11 | 165.50 | |||||||||
4.0 FINANCIAL PERFORMANCE | |||||||||||
4.1 Operating Results | |||||||||||
Achievement | Percentage | ||||||||||
Parameter | 2021-2022 | 2022-2023 | of change | ||||||||
Profit Before Tax (PBT) (Rs. in crore) | 13,022 | 7,637 | (- | 41.35% | |||||||
Profit After Tax (PAT) (Rs. in crore) | 9,448 | 5,529 | (- | 41.48% | |||||||
Net Worth (Rs. in crore) | 17,875 | 22,332 | (+) 24.93 % | ||||||||
Book value per share (Rs.) | 60.99 | 76.20 | (+) 24.94 % | ||||||||
Earnings per Share (Rs.) | 32.24 | 18.86 | (- | 41.50% | |||||||
There has been no change in the nature of business for the year | under review. | ||||||||||
4.2 Profit & Dividend
During the year under review, your Company ha: earned profit before tax of Rs 7,637 crores on aturnover of Rs.l 7,667 crores in comparison withprevious year's achievement of Rs.l 3,022 croresand Rs.25,965 crores respectively.
The Company has declared 1stInterim Dividend for FY 2022-23 @ Rs. 3.75 per share in themonth of Feb 2023 and recommended. FinalDividend for FY 2022-23 @ Rs. 2.85 per sharein the month of May 2023. Subject to theapproval of shareholders in ensuring AGM.
Amount outgo towards 1st interim Dividend for FY 2022-23 was Rs.l,098.98 crores. The shareof Government with equity stake of 60.79 % wasRs.668.07 crores.
4.3 TRANSFER TO RESERVES
The company proposed to transfer Rs.4,400 crore from net profit to General Reserve.
4.4 MATERIAL CHANGES ANDCOMMITMENTS, IF ANY, AFFECTING THEFINANCIAL POSITION OF THE COMPANYWHICH HAVE OCCURRED BETWEEN THEEND OF FINANCIAL YEAR OF THECOMPANY TO WHICH THE FINANCIALSTATEMENTS RELATE AND THE DATE OF THEREPORT: NIL
4.5 DEPOSITS
The company has not accepted any deposits covered under Chapter-V of the Companies Act,2013 during the year under review.
4.6 NON-CONVERTIBLE DEBENTURES(NCDS)
During the year under review, the company has not issued any Non-Convertible Debentures(NCDs).
5.0 INTERNAL CONTROL SYSTEMS W.R.T.FINANCIAL STATEMENTS
Necessary disclosure in respect of Internal Control Systems and their adequacy has beenmade in Annexure-C to the IndependentAuditors' Report dated 23rdMay, 2023 whichforms part of the Annual Report.
6.0(a) PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
UNDER SECTION 186 OF THE COMPANIES ACT, 2013
Necessary details in this regard have been disclosed in the financial statements.
(b) PARTICULARS OF CONTRACTS ORARRANGEMENTS WITH RELATED PARTIESDISCLOSURES
Disclosure on related party transactions forms part of the Notes to the Balance Sheet both ofStandalone and Consolidated.
(c) MAINTENANCE OF COST RECORDS
Section 148(1) of the Companies Act, 2013 specifies the provisions of maintenance ofCost Records of the company. The companyis maintaining such records as per Rule 4(2)of the Companies (Cost Records and Audit)Rules 2014 under both regulatory and non-regulatory services.
7.0 (a) STATUTORY AUDITOR'S REPORT
The Audit Report for both Standalone and Consolidated Financial Statements for theyear 2022-23 is unmodified and does notcontain any qualification, reservation oradverse remark.
(b) SECRETARIAL AUDIT REPORT
The Secretarial Audit Report for the FY 2022-23 as done by M/s Hanumanta Raju & Co., Company Secretary in whole time practicedoes not contain any qualification,reservation or adverse remark.
8.0 NEW PROJECTS & BUSINESSDIVERSIFICATIONS:
In line with the Vision plan of augmenting its Production & Evacuation capacity, technologyupgradation, diversification & value-addedproducts, NMDC has taken up manyambitious projects. Action for new projectshave been initiated. During the financial year2022-23, the details of Projects undertakenby NMDC are summarized as under:
A. Ongoing Projects:
1. Screening Plant III - Kirandul Complex
2. Slurry Pipeline Project which includesfacilities like 15 MTPA Slurry Pipeline fromBacheli to Nagarnar along with 2.0 MTPA
Ore Processing Plant at Bacheli and 2.0 MTPA Pellet Plant at Nagarnar
3. Doubling of KK line between Kirandul &Jagdalpur
4. Additional Screening Line & up gradationof existing downhill conveyor at Dep-5,Bacheli.
5. Township Project at KirandulR. Projects in pipeline:
1. Screening Plant II- Donimalai Complex
2. New crushing Plant and DownhillConveyor system at Dep-14 &11C
3. Township project at Donimalai
Projects / Schemes for capacity expansion
To augment the production and to improve the quality of product mix from Bailadila Sector, theschemes like SP—III Kirandul, New Crushing Plantof Dep.14 & 11/C and Downhill conveyor,additional screening lines in Bacheli, RapidWagon Loading System (RWLS) etc. areenvisaged. Waste mining and increase inevacuation capacity being a major area of focusfor enhancing the life of mines, the schemes likebeneficiation plant at Bacheli & Kirandul andSlurry pipeline from Bacheli to Nagarnar hasbeen taken up.
In Screening Plant-Ill project at Kirandul the site work in packages like MRSS packages, Dry circuit(major technological package),wet circuit andRWLS, Miscellaneous building packages are inprogress.
The upcoming scheme in Donimalai Comple: includes a Second Screening Plant of 10.0 Mlcapacity for handling the ROM from bothDonimalai & Kumaraswamy mines in additioithe existing Screening Plant. Stage -1 Forestclearance for the project is received in March2023 and process for final Forest clearance i:progress.
Projects / Schemes to enhance evacuatior capacity
To augment the evacuation capacity from Bailadila sector, many projects & schemes aretaken up like doubling of KK line.
Doubling of KK line between Kirandul & Jagdalpur (150.462 kms) is being executed bRailways as a Deposit work and overall progrfor this work is 79 %. Doubling of 106 Km railine is already completed and is in operation.Another 22 km rail line doubling is expected 1be completed by Aug-23. Works are in progriin other reaches and are expected to becompleted progressively by FY 2023-24. Thecompletion of this project will augment theevacuation capacity of Bailadila sector througrailway line from 28 to 40 MTPA.
Site development works of Ore Processing Plant (OPP) at Bacheli and Pellet Plant at Nagarnar arecompleted along with soil investigation studies.Works orders are already issued for packageslike Main Receiving Substation, Slurry Pumpingsystem, Slurry pipeline laying package,technological package of Pellet plant andEnabling works of Ore Processing Plant & Pelletplant and construction activities are in progressat site. Around 25.5 km of pipeline line laying iscompleted.
Township project at Kirandul is awarded in October'2022. Clearances like Environmentalclearance, lay out approval for Type-lll&IV fromTown & Country Planning Dept, are received.Clearances like Consent to Establish, Layoutapproval for Type-V quarters and BuildingPermission from Nagarpalika are in process.
Solar Power Projects
As a part of Govt, thrust to tap renewable energy sources, 1 MW capacity grid connected Roof TopSolar (RTS) power plants are installed in variousproduction units of NMDC (Bailadila Iron OreMine, Kirandul Complex & Bacheli Complex andDonimalai Iron Ore Mine, Donimalai Complex)and are in operation. Another 425 kWp RoofTop solar power plant in Bacheli Complex,Dantewada, CG was installed in March' 2023.Further, as per MNRE guidelines, to meet thetarget equal to 50% of the electricity consumptiongenerated by Renewable Energy by financial year2030, NMDC is planning is to set up a 4.5 MWground mounted solar power plant at SIU,Paloncha, Telangana.
Initiatives for Technological upgradation
1.Fleet Management System for BIOMBacheli & Kirandul Complex
As part of digital transformation to set the legacy in mining sector and increaseefficiency, productivity and safety, State of theArt Technology driven Fleet ManagementSystem (FMS) is being implemented for BIOMBacheli Complex and BIOM KirandulComplex.
Fleet Management solution includes complete software and hardware structure which isdesigned for online monitoring and control oftracking devices, installed on the vehiclebeing used for carrying out production activityin the mine. The effective outputs from thesystem are available to the user(s) online forquick monitoring and decision making alsolong-term statistical reports can be extractedfor long-term management, planning andintegration with ERP (SAP HANA). Thefeatures of the system are High & LowPrecision FMS Guidance System, ProximityAwareness, Health Monitoring, FuelManagement, Tire Pressure & Temperature,Fatigue Monitoring and CrusherManagement.
NMDC has issued Letter of Intent (Lol) to M/s. Amnex Infotechnologies Private LimitedAhmedabad for the work of "Implementationof Fleet Management System at BIOM-BacheliComplex and BIOM-Kirandul Complex ofNMDC Limited" at a total contract price of Rs.47.08 Cr, on 27.09.2021. Letter of award ofContract was issued on 04.10.2021 andContract Agreement was signed on
14.10.2021.
M/s Amnex has started to supply the Offered FMS modules materials and also started theerection works. M/s Amnex has been given2ndtime interim extension to complete all themodules of FMS upto 03.07.2023.
2. Fully Automated dispatch Iron oreSampling and Analysing System forBIOM. Bacheli. Kirandul Complex andDIOM Donimalai
In order to reduce customer dissatisfaction, eliminate human errors in collection,preparation and analysis of samples,transparency & accuracy in quality analysis,digitalization, storage and retrieval of largerecords along with integration in ERP (SAPHANA) and also as part of overall ramp up inproduction & dispatch of iron ore theproposal has been taken up and is underprocess for issuing tender.
3. Automated Capturing of Production &Dispatch data on real time basis fromOCSI Plant Belt Scales of Kirandul.
Bacheli & Donimalai Complex
In order to reduce human interference, increase productivity, utilize manpowerefficiently, storage of historic data in easilyretrievable format, improve reliability ofoperation, having diagnostics, centralizedcontrol and integration with ERP (SAP HANA)the proposal was taken up as part of firstphase of digital ERP initiative in each OCSLPlant of Kirandul, Bacheli & DonimalaiComplex. Integration of all the real timerelevant belt scales Production & Dispatchdata with a centralized web based SCADAserver on real time basis in all control roomsof OCSL plants and integration with ERPdashboard.
The work has been awarded to M/s Prudent Automation Pvt. Ltd on 07.05.2022. Thework of automated capturing of data havebeen completed, tested and on Go-Live forDonimalai and Bacheli Complex. The work cKirandul Complex is near completion andGo-Live proposed by 15thJune, 2023.
4. Replacement of existing Relay LogicCircuit (RLC) with Automation System(DCS) in Crushing Plant & Downhill D-14of BIOM Kirandul Complex
Crushing Plant & DH-14 of Kirandul Comple was commissioned in the year 1966 and theexisting electrical control system for process ibased on Relay Logic Circuit (RLC). Thesystem was initially supplied by M/sYASKAWA Japan and is in operation till dateand has become obsolete.
In view of the digital transformation drive, in mining sector and to increase the efficiency,productivity, storage of historic data in easilyretrievable format, improve reliability ofoperation, having diagnostics, centralizedcontrol and integration with other plants &ERP (SAP HANA) work has been taken up toupgrade the system from RLC to latest DCSautomation system.
E-tender issued online and bids under evaluation. Award of contract will be finalise^by July'23. Estimated time for completionafter award of work 240 days.
5. Replacement of existing Relay LogicCircuit (RLC) System. LTMCC control &communication cables etc with E-House.Automation System. & IMCC (intelligentMCC) for Loading Plant of BIOM KirandulComplex
Loading Plant, Kirandul Complex was commissioned in the year 1966 and theexisting electrical control system for process isbased on Relay Logic Circuit which isoperated continuously 24 x 7, 365 days ayear for dispatch of iron ore through rakesand direct feeding through conveyor BC 614to M/s AMNS. The system was initiallysupplied by M/s YASHKAWA, Japan.
Complete refurbishment of all Switchgears, different types of cables, control room,LTMCC, upgradation of RLC with latestautomation has been taken up in two phases.In the first phase replacement of mediumvoltage switchgears and cables and in thesecond phase the present proposal has beentaken up.
The present proposal caters to increase in the efficiency, productivity, storage of historic datain easily retrievable format, improvingreliability of operation, having diagnostics,centralized control and integration with otherplants & ERP (SAP HANA).
E-tender issued online and bids under evaluation. Award of contract will be finalisedby June'23. Estimated time for completionafter award of work is 30 days.
6.Replacement of existing Relay Logic
Circuit (RLC) with Automation Distributed Control System (DCS) and upgradation ofLTMCC to IMCC of SP-1 of BIOM.
Kirandul Complex.
The existing electrical control system for process in Screening Plant-1 of KirandulComplex is based on Relay Logic Circuit(RLC). The system was commissioned in theyear 1966 and which is vital part of processplant to supply processed and sized Iron oreto final dispatch yard of Loading Plant.
Complete refurbishment of all Switchgears, different types of cables, LTMCC, upgradation of RLC with latest automation hasbeen taken up in two phases.
A. First phase of work has been taken up forreplacement of LTMCC with IMCC (Intelligentmotor control centre), interfacing/ integrationof the system with PLC and ERR For this work,A/T No. HQMM/1018-21/1100000342/
1582 dtd 25.01.2023 issued to M/s Node Systems, Noida. Delivery is expected inJune'23 & work completion by August' 23.
B. The second phase of work is regarding DCS(Distributed Control System) PLC automationin place of existing RLC (Relay Logic Control)system at SP-1. E-tender issued online andbids under evaluation. Award of contract willbe finalised by May'23. Estimated time forcompletion after award of work is 270 days.
9.1 OVERSEAS PROJECTS / NMDC GLOBAL
Australia
Legacy Iron Ore, Perth, Australia
Legacy Iron Ore Ltd (Legacy) is an ASX-listed mineral resources company based in Perth,Western Australia, focusing on gold, iron oreand base metals. NMDC has 92.32% equityin the company. Legacy holds 24 prospectivetenements across its Mount Bevan, SouthLaverton, and East Kimberley project areas inWestern Australia. The tenements are invarious stages of exploration for a host ofcommodities, including iron (1), gold (20),base metals and tungsten (3).
The Mount Bevan Project in Western Australia is of strategic importance to Legacy. It endowsa significant magnetite Mineral Resource of1.17 billion tonnes at 30.6% Fe (JORCInferred & Indicated). The project has beenthe focus of considerable investment, withapproximately 21,000 metres of reversecirculation (RC) and 3,000 metres of coredrilling for iron ore (haematite andmagnetite) and nickel exploration.
Legacy signed a Joint Venture (JV) Magnetite Agreement with Hanco*ck MagnetiteProspecting Ltd (Hanco*ck) to complete a prefeasibility study (PFS). Under thisarrangement, Hanco*ck will invest andundertake the developmental works in MountBevan Project. Currently, Legacy has a 42%interest in the asset. After completing the pre
feasibility studies, Legacy will retain a 29.4% interest in Mount Bevan JV.
Additionally, to further underpin the future potential and strategic importance of theMount Bevan tenement, Legacy signed a jointventure agreement for lithium and otherminerals with Hanco*ck in June 2023. TheAgreement formalises terms for Hanco*ck toearn-in to all non-iron minerals, focusing onthe exploration and development of lithiumand other critical minerals.
The South Laverton Project includes Mount Celia, Yilgangi, Yerilla and Patricia Northgold assets. Of these, the Mount Celiadeposits are at the most advanced stage ofdevelopment. Some of the significantmilestones for Mount Celia's progress includesigning the Mining agreement with the NativeTitle Group and the grant of the Mining Leaseby the Western Australian Department ofMining Industry Regulation and Safety(DMIRS) in the first half of 2023. Legacy iscommitted to commencing open-cut miningin the latter half of 2023. Mount Celia has adeclared JORC-compliant Mineral Resourceof 312,600 ounces at 1.39g/t Au supportedby 30,173 metres of RC drilling and 1,150metres of core drilling.
The Yilgangi and Patricia North tenements are in the early to mid-stage of explorationmaturity. Yilgangi has a Mineral Resource of10,000 ounces but can potentially develop asa satellite gold deposit for Mount Celia'soperation.
The East Kimberley Project is 350 km south of Kununurra, Western Australia. It includesKoongie Park, Sophie Downs, Ruby Plainsand Taylor Lookout tenements, known to hostprospective geology for base metals, gold,rare earth elements (REE) and tungstenmineralisation. The East Kimberley tenementsare in the early stages of exploration, withfirst-pass drilling for base metal explorationcompleted.
International Coal Ventures Pvt. Ltd. (ICVL)
ICVL, a joint venture company of SAIL, RINL & NMDC, acquired a co*king/thermal coalmine in Mozambique in 2014 and operation
of the same was taken over by ICVL. NMDC holds 26% stake in ICVL. Benga mine, one ofthe operational asset of ICVL, has producedabout 1.63 Million tons in FY'23 (Both lowash & high ash) and exported 1.71 MillionTons.
8.2 Leases for mineralsIron Ore
Iron Ore Mining Leases:
Your Company is having Five Iron Ore Leases in Chhattisgarh and two Iron Ore Leases inKarnataka. The present status is as under
In Chhattisgarh | |||
SI. No. | Name of Mining Lease | Area in Ha | ML Validity |
1 | Bailadila Deposit-11 (A,B & C) | 874.924 | 10/09/2037 |
2 | Bailadila Deposit-14 | 322.368 | 11/09/2035 |
3 | Bailadila Deposit- 14NMZ | 506.742 | 06/12/2035 |
4 | Bailadila Deposit-5 | 540.05 | 10/09/2035 |
5 | Bailadila Deposit-10 | 309.34 | 10/09/2035 |
In Karnataka | |||
SI. No. | Name of Mining Lease | Area in Ha | ML Validity |
1 | Donimalai Iron Ore Mines | 597.54 | 03/11/2038 |
2 | Kumaraswamy Iron Ore Mines | 639.80 | 17/10/2042 |
Your Company has applied for various minerals in different State for Prospecting and MiningOperations, which are as follows:
Jharkhand-
Gold & Associated Mineral Deposit:-
Your company submitted application to the Secretary cum Commissioner, DMG, GoJ on01 -01 -2019 for proposal to reserve 24.80 Sq.Km. area in Kuchai Tehsil, District Saraikela-Karswan, Jharkahnd, under Section 1 7A ofMM(D&R) Act, 1957 for prospecting and miningoperation of Gold & associated minerals.Director, (Mines) DMG. GoJ sought comments on31-01-2023 from DMO, Khunti Dist., regardingany over lapping issues of the applied area withgranted mineral concessions adjacent if any.Thematter is being pursued with Govt, of Jharkhandfor reservation.
Copper, Nickel, Cobalt and Molybdenum minerals:-
Your Company submitted the proposal to the Secretary-cum-Commissioner, Dept, of Mines &
Geology, Govt, of Jharkhand, vide letter dated
30.01.2019 to reserve an area of 16.70 Sq. Kmin Tambadungri Village, Saraikela-Kharswandistrict, Jharkhand under Section 17A ofMM(D&R) Act 1957 for grant of Prospecting andMining operation of Copper, Nickel, Cobalt andMolybdenum minerals.
The matter is being pursued with Govt, of Jharkhand for reservation.
Iron ore Sasangada
Your Company has made a JV Company (NMDC 60% & JSMDC 40%), named Jharkhand NationalMineral Development Corporation Limited(JNMDC) at Ranchi. DMG, Govt of Jharkhandhas granted PL for iron ore & Manganese inSasangada NE area in favour of JNMDC Ltd fora period of 3 years. Detailed Geologicalmapping and topographical survey completed.
As suggested by Ministry of Mines, Govt of India, JNMDC requested the Secretary, Dept ofIndustries Mines & Geology, GoJ, for reservationof Sasangada Iron ore and Manganese deposit
under Section 17 A of MM(D&R) Act 1957 for grant of Prospecting and Exploitation.
Director (Mines), DMG, GoJ suggested that, JNMDC to submit Fresh Composite Licenceapplication after approval from JNMDC Boardas per Section 17 A of MM(D&R) AmendmentAct,2021 .The matter is being pursued withGovt, of Jharkhand for reservation.
Ghatkuri
Your Company (JNMDC) has submitted a proposal to the Secretary, Dept, of IndustriesMines & Geology, Govt, of Jharkhand forreservation of Ghatkuri Iron ore deposit, WestSinghbum District, under Section 17AofMM(D&R) Act 1957 for Prospecting and Miningoperation in favour of JNMDC. As per carryingcapacity studies of Saranda Region conductedby MOEF&CC the applied area falls underElephant Coridor which is no mining zone. YourCompany requested Addl. Sec. MoS, Gol on01 -02-2021 to take up the matter with MOEF&CC for exempting the Ghatkuri Iron Ore areafrom conservation zone and keep it underMining Zone so that this block can be reservedfor NMDC. The Matter is being pursued withGovt, of Jharkhand (GoJ) and MoS, Gol.
Karnataka-Iron ore-
Ramandurg Iron Ore Mine- Your company requested to Ministry of Steel, Govt of India on20-06-2020 to take up the matter with MoM,Gol to reserve Ramandurg Iron ore deposit(area - 5.1 7 sq. km) in favour of NMDC Ltdunder section 17Aof MM(D&R) Act,l 957.Matter is being pursued with MoS, Govt, ofIndia and Govt, of Karnataka.
Lithium-
Your company has submitted a proposal to the Director, DMG, Govt of Karnataka to reserve24.95 Sq. Km. area for Lithium and otherassociated elements in Raichur District,Karnataka under Section 17Aof MM (D&R) Act,1957 for grant of prospecting and miningoperation. Director, DMG, GoKvide letterdated 22/07/2022 favourably recommendedto the Secretary, Government (MSME & Mines),
Commerce &lndustries Dept., GoK for consideration and obtaining prior approval ofGovt, of India to reserve in favour of NMDC forgrant of prospecting & mining operation.
The matter is being pursued with Govt of Karnataka.
Odisha-
Iron & Manganese Ore
Your Company is pursuing for reservation for Malangtoli, Mankadnacha, Khandadhar (A & BBlocks), & Rakma iron ore deposits andPanduliposi Iron Ore & Manganese Deposit andKansa block for Nickel. NMDC has carried outdetailed exploration of Malangtoli Iron oredeposit, Odisha during 1972-77 and establishedmineable reserve of 340 Million tonnes.
Your Company is putting efforts and pursuing the matter with Ministry of Mines, Govt of Indiathrough MoS, Gol for reservation of MalangtoliIron Ore Block in favour of NMDC wheredetailed exploration was carried out by NMDC.Due to continuous persuasion by your Company,Ministry of Mines, Govt of India sent a letter toGovt of Odisha on 04-01-2022 regarding theircomments on the instant proposal andobservation made by IBM, Nagpur.The matter isbeing persued with Govt of Odisha forreservation in favour of NMDC Ltd.
Director (Mines), Govt, of Odisha vide letter dtd.
6.10.2022 requested NMDC to provide theproposed reservation area map in triplicate forreservation of Malangtoli Iron Ore block (B, F &G Blocks) over an area of 39.03 sq. kms undersection 17 A (1 A) for Exploration of prospectingwhich was applied by NMDC for reservation forgrant of mining lease.
Against the above communication of DMG, Odisha, NMDC vide letter dtd. 25.10.2022 hassubmitted the maps as sought and requestedDMG, Odisha and Ministry of Mines to reservethe said Malangtoli Iron Ore block under Section17A(1 A) of MMDR Act, 1957 for grant of mininglease as the applied area was already exploredby NMDC. Matter is being persued with MoS,Govt, of India and Govt, of Odisha.
Andhra Pradesh
Your Company has applied for Peravali -Betapalli in Kurnool & Anantapur Districts; Rajagollapalli in Chittoor district andKonetirajupalem -Kundam block in Nelloredistrict for Gold and associated elements.
NMDC has requested State Govt, to reserve these blocks in favour of NMDC under 17Aof MM(D&R) Act, 1957 for Prospecting & Mining. Thematter is being pursued with Govt of AR
Exploration under Sub-section (1) of section (4) of MM (D&R) Act, 1957 in MoM, Golallotted Blocks under NMET.
Your company was allocated 5 blocks (one iron ore block each in Jharkhand & Maharashtra;and 2 Gold blocks in Karnataka & 1 Gold blockin M.R) by MoM, Gol for G4 level exploration.
All the blocks were explored successfully and Geological Reports were submitted to NMET &concerned State Governments. NMET reimbursedan amount of Rs 3.42 Crores to NMDC as perSchedule of Charges fixed by MoM, Gol andclaim made by NMDC.
Your Company submitted a proposal to NMET on 06/07/2022 for G4 level Diamond Explorationat Jheriya Block, Janjgir-Champa District,Chhattisgarh.
NMET, MoM, Govt, of India allotted Jheriya Diamond Block (Area- 100.31 Sq.km) on
20.09.2022 for carrying out regional Diamondexploration with a time line of 18 months at anestimated cost of Rs. 2.46 Crores.
Your Company obtained forest permission over the forest area of Jheriya Diamond block on 20thDec,2022 from DFO, Janjgir district, CG forcollection of stream sediment sample and surfacechip samples.
Your Company started first phase of exploration
i.e. collection of Stream Sediment Samples (SSS) from 24/01/2023 in Jheriya Diamond blockand total 36 nos. of SSS are collected andprocessed through zigging at Panna ExplorationCamp, MR Heavy liquid separation through TBEand Microscopic sorting of heavy Mineralindicators have completed at R & D Centre,NMDC, Hyderabad for further EPMA Analysis.
Chigargunta-Bisanatham gold block-
Your Company has become preferred bidder for Chigargunta-Bisanatham gold block for MiningLease (ML area 262.01 Ha.) located in ChittoorDist. in Andhra Pradesh through e-audion routewith a final bid offer of 38.25%.
Hon'ble High Court of AP issued common orders in W. R Nos. 15965 (filed by Bharat Gold MinesAll Employees Industrial Cooperative Society Ltd.and others) & 21750 (filed Global Gold MinesAll Employees Industrial Cooperative Society Ltd.)of 2018, dt. 05/08/2022 and disposed the W.Rs.The operative portion of the orders are as"For all the aforesaid reasons, there are nomerits in these writ petition and they areaccordingly dismissed. There shall be no order asto costs. As a sequel, pending miscellaneouspetitioners. If any, shall stand closed".
Your Company made payment of first instalment (10%) of upfront amount i.e, Rs.1,23,80,650/- to Govt of AP in Sept, 2022.
Subsequently, Government of Andhra Pradesh issued LOI on 7th Od'2022 for grant of MiningLease to your Company.
As an initial step for commencement of mining operation in a time bound manner, on 17.10.2022 your Company appointed a TechnicalAdvisor on contract basis for assisting alltechnical works pertaining to preparation ofmining plan, underground mine & processingplant design, tailing disposal etc. along withConsulting Agency to be appointed forcommencement and operation of ChigarguntaGold Mine.
Your Company made a payment of 2ndinstalment of upfront payment {10%) @ Rs. 1.24 Cr toDMG, GoAP on 31/03/2023.
Mining Plan preparation and obtaining statutory clearances of Chigargunta-Bisanatham GoldBlock is under progress.
NMDC has paid 1** & 2ndInstalments of upfront payments (10%+l 0%} amounting to Rs 2.48crores and deposited the Performance Security(i.e Bank Guarantee for amount of Rs.l 2.39 Cr)to DMG, GoAR The Joint DGPS Survey of theGold Block is completed. Efforts are on to seekall the clearances for execution of the Mininglease within stipulated time of October 2025.
Drone Based Mineral Exploration
Your Company has signed Contract Research Agreement & EOI with Geology & GeophysicsDept, and Mining Dept, of I IT, Khargapur signedon 16.03.2022. The development of dataanalysis, data science & machine learningtechnologies are creating an optimal ecosystemfor mineral exploration & mining. Drone
Technology plays an important role in generation of meaningful digital spatial data.
NMDC becomes First CPSE to initiate "Drone Based Mineral Exploration in India". NMDCprocured 2 Nos. Drones, One Magnetometerand one Hypersprectral + LIDAR Sensors.NMDCExecutives became Drone Pilot after trained fromTSAA, Telangana. Draft projects prepared for 3types of studies, which would be taken up jointlywith IIT-KGR
The acquisition of image data with drone based UAS is fast, easy, targeted and without the needof extensive time- and cost-consuming. It ismostly independent of cloud cover conditionsand is even applicable in barely accessible areas.The heavily decreased influence of theatmosphere does not require difficult andcomplex atmospheric corrections. Drones presentthe perfect trade-off between coverage and scaleof observation, and are essential when groundaccess is impossible, dangerous or logisticallycostly.
Drone based mineral exploration to condud-Geological exploration using hyperspectral remote sensing data collected by Hyperspectralimaging sensor, Geophysical exploration usingmagnetic data collected by magnetometer,Topographical mapping using 3D data collectedby Li DAR, Environmental studies in mines,Photogrammetry and generation of anomalousmaps for identification of potential mineralizedtargets.
Drone based Hyperspectral sensors have become a key tool for a large range of applications inremote sensing and are now widely used ingeology, mineral mapping and exploration.During the last few years, lightweighthyperspedral imaging (HSI) sensors andgeophysical instrument have been increasinglydeveloped for use on Drone. These drone-bornesensors can close the gap between field- and air-or space-borne data and provide small-scalehigh-resolution hyperspedral imagery.
Drone based magnetic survey is used to colled magnetic data which is very important to definethe location and the shape of the buriedmagmatic body, and to estimate if its magneticproperties are indicative for mineralization.
NMDC-CMDC Limited (NCL) a JV Company of NMDC Limited & CMDC Ltd:
NMDC-CMDC Limited (NCL) is a Joint venture Company of NMDC Limited and CMDC Limitedwith a share capital ratio of 51% and 49%respectively. The present status of all the projectsof the Company is as follows:-
Bailadila Deposit-4
Ministry of Mines, GOI has reserved Bailadila Iron Ore Deposit-4 an area of 646.596 ha infavour of NMDC-CMDC limited (NCL) undersection 1 7A (1 A) of MMDR Act, 1957 vide theirGazette Notification no. 697(E) dated30/09/2019 for a period of 05 years forprospecting and mining operation. MRD, GoCGhas issued LOI for grant of ML vide letter dated26/06/2021 in favour of NCL for five years. TheMining Plan of Dep-4 has been approved byIBM, Raipur on 24/09/2021. NCL has appliedfor obtaining environment clearance underEnvironment Protection Act, 1986 and ForestClearance under Forest Conservation act, 1980.
Terms of Reference (ToR) for Industry-1 sector (ancillary activities outside ML area) issued on
21.02.2022 and for Mining sector (miningactivities inside ML area) issued on 11.03.2022for obtaining environment clearance. Ecologicalstudies, flora & fauna studies completed on
31.05.2022. Draft EIA/EMP report submitted toCECB, Govt, of Chhattisgarh for public hearingon 31.03.2023.
Gram Sabha for acquisition of private revenue land held on 25.04.2023. Land acquisitionapplications for village Bhansi and Porokamelialong with the requisite fee towards servicecharge of Land Acquisition, Administrative cost ofRehabilitation and Resettlement and cost forsocial impact assessment study is submitted on
25.05.2023. District Collector, Dantewada hasissued notification under section 4 of LARR Act2013 for SIA studies on 26.05.2023.
Forest application for forest diversion proposal is registered vide registration no.
FP/CG/MIN/146694/2021 dated 16.06.2022. Forest Department has made available requireddegraded Forest Land for CompensatoryAfforestation in the Forest Ranges of Marwahi
and Janjgir-Champa. DGPS Survey report of 846.296 Ha degraded forest land in Janjgir-Champa Forest division submitted to DFO,Janjgir-Champa on 19.04.2023, CA plantationscheme prepared & submitted. DGPS surveyreport for 530.302 Ha degraded forest land forCompensatory Afforestation at Marwahi forestdivision was submitted on 08.05.2023 and CAplantation scheme submitted. Tree enumerationwork completed and report has been submittedto Forest Ranger Office, Bacheli. Revised forestdiversion proposal for a revised area of682.2722 Ha (570.100 Ha inside ML area +100.077 Ha outside ML area + 12.0952 HaBade Jhad ke jungle) along with 44-point checklist submitted to DFO, Dantewada and updatedin PARIVESH Portal on 29.04.2023.
Draft Wild Life conservation & Management Plan, Biodiversity Conservation Plan and Soil, Water &Moisture Conservation Plan submitted to theoffice of DFO-Dantewada on 29.04.2023 for thescrutiny.
Bailadila Deposit -13
Mining Lease was granted for Bailadila Iron Ore Deposit-13 over an area of 413.745 Ha infavour of NMDC Limited for 50 years by StateGovt, of Chhattisgarh vide order no. F3-84/05/12 dated 07/01/201 7 and Lease deedfor the same has been executed on 10/01/201 7.
As per JV agreement dated 27th March 2007 by and between CMDC and NMDC Ltd., mininglease for Bailadila Iron Ore Deposit-13 had to betransferred in the name of NMDC-CMDC Limited(NCL) and then NCL would undertake all therequired steps for development and operation ofthe Mine. Further, Mining Lease Grant Order No.F3-84/95/12 dated 07/01/201 7, in respect ofDeposit-13 issued by State Government ofChhattisgarh, stipulate that 'after the execution ofthe lease deed, NMDC will transfer the MiningLease to the JV Company NMDC-CMDCLimited'.
Mineral Resource Department, Government of Chhattisgarh, has issued an order no. F3-84/1995/12 dated 06/11/201 7 for transferringthe mining lease of Bailadila Iron Ore Deposit-13 in favor of NMDC-CMDC Limited. MiningLease of Deposit-13 has been transferred infavour of NMDC-CMDC Limited (NCL) on04.12.201 7. On 02.07.2018 M/s AdaniEnterprises Limited has been appointed as MDOfor Bailadila Iron Ore Deposit-13.
MoEF&CC, GOI, has accorded transfer of Environmental Clearance in name of NMDC-CMDC Limited from NMDC on 12.12.2019.
Final FC under Section 2(ii) of Forest Conservation Act 1980 was granted over an areaof 315.813 Ha. in favour of NMDC Limited byMoEF&CC on 09.01.201 7. Action has beeninitiated for transfer of existing FC in favour ofNCL. CECB granted approval to NCL for consentto Operate 2MTPA on 27.04.2019.
The Revised Mine Plan of NCL was approved by IBM, Raipur on 06.03.2019 for a capacity of 10MTPA. The validity of the Mining Plan of Deposit-13 was up to March 2021. Hence, RevisedMining Plan for the period 2021-26 has beenprepared by NMDC and the same was approvedby IBM Raipur on 12.01.2021.
District administrator, Dantewada issued orders to stop all project activities of Dep-13 on
11.06.2019 due to protest by local villagersagainst MDO and demanding enquiry againstFRA certificate issued by Gram Sabha. ForestDepartment, GOCG, Raipur has issued showcause notice to NMDC for cancelling the Stage-llForest clearance of Deposit-13 on 06.03.2020considering the report of District Administrator,Dantewada to nullify the Gram Sabhaproceedings. NMDC-CMDC Limited (NCL) hassubmitted the reply to the forest Department,Govt, of Chhattisgarh against the show causenotice issued for cancelling the Stage-ll Forestclearance of Deposit-13.
MRD, Govt, of Chhattisgarh has issued a notice to NMDC-CMDC Limited (NCL) for lapsing theMining Lease of Deposit-13 for noncommencement of mining operation within 2years from grant of mining lease under Rule20(3) of MCR 2016 on 05.03.2020. NMDC-CMDC Limited (NCL) has submitted the reply tothe MRD, GOCG against the notice issued forlapsing the Mining Lease of Deposit-13 for noncommencement of mining operation within 2years from grant of mining lease under Rule20(3) of MCR 2016.
NCL vide letter no. NCL/HO/Dep-13/ML/2020/833/01 dated 25.03.2021 has submitted Rs. 1,00,000/- (Rs. One Lakh) towardsrevival of mining Lease of Bailadila Iron OreDeposit-13 under Rule 20(5) of MCR (other thanatomic and hydro carbons energy minerals)
2016 vide Challan no: 146803648 dated
23.03.2021.
NCL vide letter no. NCL/HO/Dep-13/ML/2022/1014 dated 14.02.2022 has again requested Under Secretary, MRD, GoCG forproviding suitable decision in the matter oflapsing of mining lease, so as to start thedevelopment and operation of Deposit-13. Also,NCL vide letter no. NCL/HO/Dep-13/ML/2022/1015 dated 14.02.2022 hasrequested Dy. Secretary (Forest), GoCG forproviding suitable decision in the matter ofcancelling the Stage-ll Forest clearance ofDeposit-13, so as to start the development andoperation of Deposit-13.
Performance security has been renewed for another five years as per Mine Development andProduction agreement (MDPA) on 05.11.2022.
Baloda - Belmundi Diamond Block
Ministry of Mines, GOI vide G.S.R.744(E) dt
14.10.2021 granted reservation of Baloda-Belmundi Diamond Block for PL or ML in favourof NMDC-CMDC limited under section 17A(1 A)of MMDR Act, 1957. NCL vide letter dated
13.01.2022, submitted application to Secretary,MRD, GoCG for grant of Prospecting License forBaloda-Belmundi Diamond Block.
MRD, GoCG, Raipur vide letter dated
28.04.2022 has issued LOI for grant ofProspecting License for Baloda-BelmundiDiamond Block (156.80 sq. km) under Rule
17A(1 A) of MMDR Act 2015 (as amended) in favour of NMDC-CMDC Limited for three (3)years.
The Company has submitted permission letter from forest department for carrying outprospecting work in 33.23 sq.km forest area ofBaloda-Belmundi Diamond block and affidavit towork in revenue land with due consent of landowner and asked MRD, GoCG to issue finalgrant order for prospecting licence of Baloda-
Belmundi Diamond Block on 20.05.2022.
MRD, GoCG, Raipur vide letter dated
02.01.2023 has issued final grant order forprospecting licence of Baloda-BelmundiDiamond Block.
The Company has submitted Scheme of prospecting for Diamond Exploration in Baloda-Belmundi Diamond Block to IBM, Raipur andMining Officer, Mahasamund, GoCG on
06.01.2023. PL deed of Baloda-BelmundiDiamond Block with GoCG on dated
28.02.2023 and the same is registered on dated
01.03.2023.
District Collector, Mahasamund vide letter dated
26.05.2023 has given permission to NMDC-CMDC Limited to start the prospecting work. Firstphase of exploration (Stream SedimentsSampling) has been done in the allotted blockfrom 08.05.2023 to 09.05.2023
Bailadila Deposit No.1 and 3 & 8
The Company has submitted proposal to the
Secretary, MRD, GoCG dated 06/10/2021 & 25/10/2021 to reserve Dep. No. 1,3&8respectively in favour of NMDC-CMDC Limited(NCL) under section 17 A (2) of MM (D&R) Act,1957.
MRD, GoCG vide letter dated 24.11.2021 has recommended to MoM, GOI for reservation of21.3 Sq.km area of Dep-1 mine in favour ofNMDC-CMDC Limited under rule 1 7A(2) ofMMDRAct 1957 (as amended) for undertakingprospecting followed by mining operations.
MoM, GOI has turned down the request for reservation of Dep-1 in favour of NMDC-CMDCLimited since NMDC, CMDC and NMDC-CMDCLimited has exceeded the area limit prescribedfor ML of 10 sq. km under section 6 of MMDRAct vide letter dated 04.07.2022.
MRD, GoCG, Raipur vide letter dated 20.04.2022 has recommended to MoM, GOI forreservation of 18.15 Sq.km area of Dep-3 & 8mine for prospecting cum mining in favour ofNMDC-CMDC Limited under rule 17Aof MMDRAct 1957 (as amended).
11.0 ENVIRONMENT MANAGEMENT:
Environmental Clearances:
1. Your company has obtained EnvironmentClearance (EC) from State EnvironmentalImpact Assessment Authority (SEIAA),Bangalore on 16.11.2022 for construction ofMulti storied Residential complex {Type-lll{560 units, 14 towers, stilt+10), Type-IV (96units, 2 towers, stilt+8) & Type-V ( 21 units, 1tower, Stilt+7)}.
2. Your company has obtained EnvironmentClearance from State Environmental ImpactAssessment Authority, (SEIAA), Raipur on
15.3.2023 for Construction of multi storiedresidential complex {Type-Ill (200 units, 5towers, stilt+10). Type-IV (144 units, 3towers, stilt+8) & Type-V (21 units, 1 tower,Stilt+7}}
3. Your company has obtainedrecommendations by Environment AppraisalCommittee (EAC), MoEF&CC for grant ofEnvironment Clearance for CapacityExpansion of Kumaraswamy Iron Ore Minefrom 7 to 10 MTPA Iron Ore on 10.11.2022.
Terms of Reference (TOR)
• Your company has obtained TOR on
6.2.2023 from MoEF&CC, New Delhi withspecific and standard conditions for MainMining Lease & Supplementary Mining Lease
of the Diamond Mining Project, Majhgawan (Panna), Madhya Pradesh for preparation ofEIA/EMP report.
Certified Compliance Report
1. Your company has obtained CertifiedCompliance Report (CCR) with respect to theconditions stipulated in the existingEnvironment Clearance dated 23/7/2007accorded to Bailadila Iron Ore Mine -Deposit 5 from Integrated Regional Office(IRO), Raipur along with a closure report on30/1/2023.
2. Your company has obtained CertifiedCompliance Report (CCR) from IRO,Bangalore with respect to the conditionsstipulated in the existing EnvironmentClearance dated 25/1/2021 accorded toKumaraswamy Iron Ore Mine, Bellari(Karnataka).
Forest Clearances:
1. Your company has obtained extension ofvalidity of Forest Clearance co-terminus withMining Lease by another 20 years i.e. up to17/10/2042 in respect of the KIOM over anarea of 324.70 Ha from Government ofKarnataka, Forest, Ecology and Environment(FEE) Deptt, Bangalore.
2. Your company has obtained the Final StageForest Clearance from MOEF&CC for
diversion of 5.71 Ha of forestland for widening of existing approach road w.r.tKIOM (ML No. Ill 1) S.M Block Forest,Donimalai, Sandur, Karnataka on10.11.2022.
3. Your company has obtained Stage-1 ForestClearance from MOEFCC on 6.3.2023 fordiversion of 53.67 Ha of forest land (nearM.L No. 2396 of NMDC) in Donimalai forestblock, Sandur Taluk, Ballari Distt forconstruction of new screening plant-ll, TailingDam and laying of water pipeline atDonimalai.
Wild Life Clearance:
• Diamond Mining Project Panna, has obtainedWild life Clearance from PCCF / Chief WildLife Warden, Madhya Pradesh for a period of20 years (valid up to 30.6.2040).
Consent to Operate
• Your company has obtained valid operatingconsents from State Pollution Control Boardsunder Air (Prevention & Control of Pollution)Acts 1981 and Water (Prevention & Controlof Pollution) Act 1974 for all projects. Yourcompany also obtained validity extension ofconsent to establish for Screening Plant-Ill atKirandul, Pellet Plant at Nagarnar & Iron OreBeneficiation Plant at Bacheli.
Environment, Social Governance:
• Your company has conducted ESG studies inline with the SEBI guidelines and prescribedframeworks. The Sustainability report for theyear 2021-22 has been released on
26.1.2023 and FY 2022-23 the report will bereleased along with annual report of thecompany.
11.0 SAFETY
Mine Safety - Activities
NMDC has its training centers in all its projects. They are equipped with infrastructure as requiredunder Mines Vocational Training Rules. Thesecenters cater to the needs of basic training,refresher training and training for skilled workersand also for those injured on duty.
Health & Safety continue to be our priority with employees & contractual workmen at our Projects
adhering to the SOPs & Safety norms. NMDC appreciate that safety is a journey & is committedto continually improve its performance and sethigh standards.
In each mining project of NMDC sufficient number of Workmen Inspectors arenominated/appointed for Mining operations,Mechanical and Electrical installations as perstatutory requirements for carrying safetyinspections.
Mine Level Tripartite Safety Committee Meetings (MLTSCM) are being conducted once in a year atProject Level with Senior Officials, UnionRepresentatives and DGMS Officials in whichSafety Performance and its appraisal are madeand the recommendations are implemented.
Corporate Level Tripartite Safety Committee Meeting is being held regularly once in a year atHead Office and the recommendations areimplemented.
Safety Committees have been constituted in every operating mine and Pit Safety meetings are heldevery month for discussing the safety matters andcorrective actions related to work atmosphere.
In order to ensure that safety systems are up to date & also comply with the latest safetyregulations, a cross-project Internal Safety Audithas been started in NMDC.
Safety Management System has been implemented in all our Mines. Risk Assessmentstudies are being conducted regularly.
NMDC provides extensive safety training programmes to inculcate safety habits & mindsetat work to its employees. Behavioral based safetytraining is also given to the employees.
The Severity Rate for the year 2022-23 is 15.09.
(Severity Rate = Mondays lost per 100000 Mondays worked).
OHS Activities:
Occupational Health Services have been provided with adequate manpower andinfrastructure and are functioning in full-fledgedmanner at all the Projects, headed by QualifiedDoctors trained in OHS at Central LabourInstitute, Mumbai.
Periodical Medical Examination under statute is carried out regularly in all the projects.
NMDC strives to ensure that workers are not exposed to occupational hazards that negativelyaffect their health. NMDC also has well equippedhospitals with capable medical teams available24/7 to support the health & well being of theworkers & the surrounding community.
Integrated Management System (IMS)
Comprising of Quality Management System (QMS) - ISO 9001:2015; EnvironmentalManagement System (EMS) - ISO 14001:2015;Occupational Health & Safely ManagementSystem (OHSMS) - ISO 45001:2018 & SocialAccountability - SA 8000:2014 CertificationStandards.
All the NMDC Production Projects viz. Bailadila Iron Ore Mine, Kirandul Complex (BIOM, KC);Bailadila Iron Ore Mine, Bacheli Complex(BIOM, BC); Donimalai Iron Ore Mine &Kumarswamy Iron Ore Mine, DonimalaiComplex (DIOM & KIOM) are accredited withIntegrated Management System (IMS).
12.0 IMPLEMENTATION OF INTEGRITY PACT:
With the objective of improving transparency in procurement, NMDC had entered into MOU withTransparency International India forimplementation of Integrity Pact Programmeduring September 2007. NMDC is the firstMining Navratna Company which entered intoIntegrity Pact Programme in the year 2007.
Initially, the threshold value for procurement & contracts for entering into the Integrity Pact havebeen fixed as follows: -
Contracts : | Rs. 50.00 crores |
Procurements : | Rs. 15.00 crores |
To widen the coverage of procurements / contracts under Integrity Pact, the threshold limits | |
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 limits have beenreduced to Rs.1.00 crore for procurements /contracts w.e.f September 2018.
During 2022-23,183 tenders valuing Rs.1568.79 crores were covered under this category.
12.1 Transparency in procurements handled
In order to enhance transparency in procurements & increasing competitiveness, ourcompany adopted the following modes often dering :-
> e-Procurement:
* All procurements of value above Rs.2 lakhare tendered through e-mode at HO &Projects. Reverse e-auctions are conductedfor high value Equipments, spares &consumables, wherever possible, bydeclaring upfront in the tender document.
* Broad basing of vendors done for high valueitems viz. Milled Ferro Silicon, CrusherSpares, Under Carriage parts of Excavators,TCRR bits, conveyer belts and plant itemswhich 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 toby giving generalized specifications &drawings, wherever possible or with OEMPart Numbers. Single Tender / Proprietarypurchases have been reduced fromRs.1579.15 lakhs (85 cases) during 2017-18to Rs.287.67 lakhs (34 cases) during 2018-
19. Rs.271.85 lakhs (26 cases) during 2019-
20, Rs.3975.96 Lakhs (33 cases) during2020-21, Rs.13939.95 Lakhs (56 cases)during 2021-22. Rs.17689.98 Lakhs (93cases) during 2022-23. The Increase duringFY 2022-23 is due to implementation of Mil-
Make In India Policy in NMDC.
> Pre-qualifying conditions:
PQC for HEM equipments tenders have been reviewed and a structured PQCs have beenmade keeping in view wider participation.
> GeM Portal:
Procurement through GeM portal as per the guidelines of GOI, is being done for theMaterials which are available in the GeMPortal.Total 2811 orders valuing Rs.840crores were placed during the year2022-23.
> CPP Portal:
AAM Dept, is posting tenders in the CPP portal except Single tender and proprietary items.
All the bidders approaching through CPP portal for entering in NMDC are invited forregistration with NMDC or conducting trialwith NMDC for ensuring their quality product.
13.0 NMDC'S R&D CENTRE AT HYDERABAD
NMDC R&D centre is dedicated to undertake product and technology development projectsrelated to ores, minerals and steel making tomaintain its excellence in process performance.R&D centre has made significant contribution notonly to NMDC operating projects but also toIndian industries and is recognized byDepartment of Scientific and Industrial Research(DSIR). R&D centre undertakes works related tomineral processing, flow sheet development,mineralogical studies, material handling &storage, metallurgical studies of iron ore andcoal, chemical analysis etc. It is a pioneer in thefield of beneficiation and continuously workingfor development of dry beneficiation technologyfor different ores and minerals. It is endowedwith state of art laboratory equipment to analyzedifferent minerals, coals, metals and non-metals.For further details, reference may be made toAnnexure-ll attached to the Directors' Report.
14.0 GLOBAL EXPLORATION CENTRE,RAIPUR
NMDC's Global Exploration Centre at Raipur is continuously doing exploration in the mines ofNMDC and adding new reserves every year.NMDC has offered to State Governments toundertake free exploration to quantify mineralresources in the State.
15.0 IMPLEMENTATION OF OFFICIALLANGUAGE POLICY
NMDC effectively continued its efforts to implement and comply with the OfficialLanguage Policy of the Government of India in itsheadquarters, projects and units.
Hindi Parangat training continued whole the year through on- line mode. So far 170 employees ofCorporate Office have been successfullyimparted Parangat training. Hindi workshopswere organized in every quarter at headquartersand various projects. Official LanguageImplementation Committee meetings were heldevery quarter at headquarters as well as atprojects.
Hindi Kavi Sammelan was organized by Corporate Office at Hyderabad with Hindi poetsof international fame. Honorable Members ofHindi Salahakar Samiti of Ministry of Steelalongwith NMDC family attended the event.Rajbhasha Technical seminars were organized atBailadila Iron Ore Complex, Kirandul andDiamond Mining Project, Panna.
Inter-PSU Hindi competition was conducted by Corporate Office for all the PSUs of Hyderabad.
Hindi Fortnight was organized at Corporate Office as well as at all the Projects and Units.
Messages of CMD were published in Hindi dailies of Hyderabad and posted on varioussocial media platforms. Various competitionswere conducted and prizes were distributed.
Apart from Hindi Fortnight, to maintain continuity in promotion activities for use of Rajbhasha inofficial work various monthly competitions wereorganized and prizes distributed.
A meeting of official language representatives of various departments of Corporate office was heldto speed up the use of official language in alldepartments.
NMDC actively participated in 12thWorld Hindi Conference held at Fiji. Two Officers from thecompany attended conference.
The official language house journal "Khanij B ha rati" of the headquarters was published.Various Hindi/bilingual/trilingual monthlymagazines namely Baila Samachar, BacheliSamachar, Doni Samachar, Hira Samachar werealso published from the projects. "Takaniki Ksh*tij"and "Hira panna" magazines were publishedrespectively from Kirandul and Panna Projects.
Diamond Mining Project, Panna shoulders the responsibility as convenor of Town OfficialLanguage Implementation Committee of Panna.Project organized Half yearly meetings and otherprograms for all the member offices for
implementation of Rajbhasha in Panna.
Special Hindi workshop for member offices of TOLIC, Vishakhapatnam was organized by RO,Visakhapatnam under the aegis of NagarRajbhasha Implementation Committee,Visakhapatnam.
Head Office of NMDC Ltd received the most coveted Rajbhasha Kirti Puraskar (Third) for PSUsin "C" region for the Year 2021 -22. NMDC washonored with Rajbhasha Kirti award for thefourth year consecutively.
NMDC received "Rajbhasha Sammaan" award from Ministry of Steel amongst Steel PSUs.
Head Office of NMDC Ltd won first prize "Rajbhasha Shield" for the year 2021-22 in thecategory of medium sized undertakings forexcellent implementation of Official Language byTown Official Language ImplementationCommittee (Undertaking), Hyderabad-Secunderabad. NMDC received this award forthe seventh year consecutively.
Hindi House journal of Corporate Office "Khanij Bharati" also received First prize of Town OfficialLanguage Implementation Committee(Undertaking), Hyderabad-Secunderabad in e-magazine category.
16.0 DETAILS REQUIRED TO BEFURNISHED IN TERMS OF MICRO, SMALLAND MEDIUM ENTERPRISES DEVELOPMENTACT, 2006 (MSMED).
The company has taken the following steps to procure goods and services from MSE firms, MSESC/ST & Women entrepreneurs. NMDC hasconducted exclusive MSE SC / ST vendor meets atit* projects in Chhattisgarh and Karnataka andalso at Hyderabad to understand the tenderprocess and our requirement. NMDC hasparticipated in the various vendor meetsorganised by Ministry of Micro, Small & MediumEnterprises in association with FICCI. BesidesNMDC has organised 12 Nos. Vendor Meets /programmes at various places in total during2022-23. NMDC interacted with prospective MSEentrepreneurs encouraging them for supply ofgoods for various plants at Bailadila, Donimalai& Panna.
For encouraging MSE SC/ST firms, exclusive trials are being conducted and after successful trialsthe firms are given tender enquiry in LimitedTender.
Moreover, against the qualification criteria in tenders we have not received any complaint /request with regard to relaxing tender terms &conditions. For the last 3 years NMDC isachieving the targets as per Public ProcurementPolicy. The results of 2022-23 are given below: -
Categoiy of MSE Firm | Norms | Achievement |
Procurement from MSE firms | 25% | 77.49 % |
Procurement from SC / ST MSE firms | 4% | 5.25 % |
Procurement from Women Entrepreneurs MSE firms | 3% | 4.65 % |
NMDC also received the Certificate of Appreciation from Ministry of MSME for highestprocurement amongst Navratna CPSEs during2021-22 and The Best Performer under theNavratna Category during the year 2019 and forour exemplary work towards promotion of SC/STentrepreneurs based on the performanceparameters namely (i) procurement from SC/ST
entrepreneurs, (ii) No. of Vendor Development Programs for SC/ST and (iii) Number of SC/STentrepreneurs benefitted as per the datauploaded on Sambandh Portal.
17.0 MANPOWER
17.1 Employee-Employer relations
The overall industrial relations situation was peaceful and cordial during the year. Therewas no strike/lockout against the Company'spolicies affecting production and productivity.
17.2 Scheduled Castes & Scheduled Tribes
59 candidates belonging to Scheduled Caste and 114 candidates belonging to ScheduledTribes were appointed against 435 postsfilled by direct recruitment.
17.3 Strength of SCs & STs as on 31st March 2023 | |
1. Total number of employees | 5713 |
2. Scheduled Castes amongst them | 837 |
3. Scheduled Tribes amongst them | 1485 |
4. Other Backward Class | 1202 |
5. Physically challenged employees | 105 |
17.4 Particulars of employees drawingremuneration of Rs.8.5 lakhs per month orRs.1.02 crores per annum under Section 197of the Companies Act, 2013 read withCompanies (Appointment and remunerationof Managerial Personnel) Rules, 2014 asamended-NIL.
17.5 Staff Welfare activities
Adequate facilities for education, health, accommodation and recreation were in place.Various Bipartite fora have been functioningsatisfactorily.
17.6 Promotion of Sports
Sport tournaments were arranged for the employees, the wards of employees and also forthe local youth.
17.7 Disclosure under Section 22 of theSexual Harassment of Women at Workplace(Prevention, Prohibition and Redressal) Act2013
One complaint has been received under the Sexual Harassment of Women at Workplace(Prevention, Prohibition and Redressal) Act 2013during the financial year 2022-2023.
18.0 HUMAN RESOURCES DEVELOPMENT
At NMDC, your employees are crucial assets and their contribution is critical to its success andperformance. We value and invest in youremployees so as to attract and retain talent,increase productivity and profitability, andachieve its goals and objectives. In NMDC, weprovide a robust learning culture environment inwhich learning is encouraged, supported, andintegrated into the daily activities.
In your company, a high impact learning culture is provided where learning is not just a one-timeevent but is an ongoing & continuous processthat is integrated into the daily workenvironment. This means that your workforce isencouraged and supported to learn on the joband to continuously develop their skills andknowledge. At NMDC learning is a collaborativeprocess. Employees are encouraged to worktogether to share knowledge, skills, andexperiences, and to learn from each other.
Corporate HRD Learning and Development department is aligned with its business as well asstrategic goals. This means that your employeesare trained to develop the skills, knowledge andattitude that are critical to achieving its objectives.In a high impact learning culture, your companyrecognizes that each of its employee has uniquelearning needs and styles. Therefore, learning ispersonalized to meet individual needs andpreferences.
We believe that in NMDC, a high impact learning culture is critical factor that will attractand retain top talent, drive innovation andgrowth, and stay competitive in today's rapidlychanging business environment. By creating aculture that supports and encourages continuouslearning and development, organizations canbuild a workforce that is agile, engaged, andcommitted to achieving its goals.NMDC spentRs.21.03 Crores (approx.) on Learning andDevelopment during the year 2022-23 ascompared to Rs.15 crores(approx.) inprevious year.
In your company, productivity and employees are closely related, as employees are the ones whoperform the tasks and activities that contribute toan organization's overall productivity. We firmlybelieve that, employee productivity is critical toour success, and organizations that prioritizeemployee engagement, skills and knowledge,health and well-being, workload managementand job design, and employee satisfaction cancreate an environment that support high levels ofproductivity.
Business sustainability and learning are closely interconnected. We believe that businesssustainability is about creating value for allstakeholders over the long term, while balancingeconomic, environmental, and socialconsiderations. By adopting sustainable business& best practices we have reduced environmentalfootprint, build strong relationships withstakeholders, and created a more resilient andprosperous future for all. Overall, learning canplay a critical role in supporting businesssustainability. By building a culture ofsustainability, driving innovation, supportingcontinuous improvement, engaging stakeholders,and building a more sustainable business model,organizations can enhance their sustainabilitypractices and drive long-term success.
For a high-performance organization, it's imperative that the knowledge and skills arecontinuously upgraded by virtue of impartingnew age learning technologies. It is pertinent tomention here that, during 2022-23 Learning andDevelopment initiatives were aligned with ourbusiness goals. The on-going core programmeswere revitalised to reflect the emerging capabilityrequirements. In addition to core programmes,customised e- learning programmes were alsooffered to address the needs expressed bybusinesses, aimed at building specific capabilitiesat various levels of the organization.
A. TRAINING PROGRAMMES (In-House /External)
Corporate HRD has organised customized In House Training as well as External Trainingprogrammes covering executives during 2022-23. Corporate HRD Conducted severalspecialized & curated Programmes on:
Ý Specialised intervention w.r.t Reservation
Policy for SC/ST, OBC, Ex Servicemen, PWD and EWS in PSE
Ý Sexual Harassment of Women at Work Place(Prevention, Prohibition & Redressal ACT2013).
Ý Successfully organised and conducted inhouse training & programme on New labourcodes by XLRI Jamshedpur by covering 25executives from various disciplines.
Ý Online Training programme for InquiryOfficers (lOs) & Presenting Officers (POs) byCBI Academy
Ý Workshop on Arbitration and ContractManagement Negotiation Skills.
Ý Environment, Health and Safely Awarenessmasterclass in Dubai.
Ý Conducted various health & wellnessprogramme by various bodies.
Ý Workshop on Recent Amendments inArbitration and Conciliation Act 1966.
Ý Online Programme on Design thinking fortop management by CM.
Ý Conducted Gender Sensitisation program atHead office
Ý Organised program on GEM & Contracts,IO/PO, tender & contracts, publicprocurement, GEM & Disciplinary Matters.
Ý NMDC HR conclave approved for all NMDCHR executives with I SB Hyderabad asacademic partner in 3 cohorts. 2 cohorts arealready successfully conducted at Kolkata andKerala. The program was well appreciated by
NMDC top leadership and participants.3rd HR Conclave to be conducted shortly.
B. CULTURE BUILDING & HAPPINESSWORKSHOPS
COVID-19 pandemic has brought with it a great deal of stress and anxiety for manypeople. To overcome unprecedentedchallenges of COVID 19 before us alongsideFear, Stress & Anxiety, happiness programmewas conducted by NMDC for the employeesnot only to increase the level of happinesswithin the organisation but also helpemployees at various levels to understandwhy happiness is worthwhile goal forachieving high performance in life andwork.
Covered 500 executives Managers & above executives in a unique tailored programmenamely "IKIGAI- A Happy WorkforceProgramme- Phase 2". Keeping in view thefeedback from the phase-1 &2 participants, theprogramme is further extended to 540executives "IKIGAI- A Happy WorkforceProgramme- Phase 3"
Culture building and happiness programs can help to create a positive workenvironment that foster employeeengagement, retention, and productivity.
This can lead to improved business outcomes and a stronger brand reputation, ultimatelydriving long-term success.
C. SKILL DEVELOPMENT TRAINING
Signed MoU with National Skill Development Corporation (NSDC) for Skill Development
Program and RPL Certification for 1600 NMDC workmen in collaboration with NSDC. Job RolesIdentified and currently selection of TrainingPartner (TP) is in hand by NSDC in consultationwith NMDC.
D. STRENGTHENING OF QUALITY CIRCLES
Strengthened the Quality Circles movement, by giving more thrust on quality circles activities tosolve problems and facilitate high standards inthe workplace by participation from all projects
E. TRAINING ON PREVENTIVE VIGILANCE
Ý Conducted Preventive Vigilance TrainingModule for mid-career Executives by covering atotal of 478 (Mid-career) & 186 (Induction Level)upto 2022-23 plus employees sensitizing themon various Preventive vigilance aspects.
F. FOREIGN VISITS -
There has been no foreign training in terms of government directives.
Ý Mining Indaba teams deputed to SouthAfrica, P-DAC teams deputed to Canada, IMARCteams deputed to Australia, Vishwa HindiSammelan, Fiji and Company work related vizpre-dispatch Inspection, Board Meeting w.r.t toLegacy.
Ý Conducted Successfully 2 AdvancedManagement Program (AMP) Study tour for 13nos Senior executive in association with ASCI,Hyderabad.
G. WEB BASED LEARNING INITIATIVES
Successfully organised and conducted various specialised programme during the year viz. Webbased learning programmes, ProfessionalResidential programme with Premier Institutions,Specialised Curated programmes, Technical,Managerial & Behavioural and also on Healthand Wellness.
H. DIGITAL INITIATIVES
SAP Learning Solutions & HRD Dash Board.
While learning can be challenging at times, it is important to embrace this challenge and view itas an opportunity for growth and development.By committing to lifelong learning andembracing new challenges, we can unlock ourfull potential and achieve greater success in allareas of our lives.
In line with the implementation of ERP-SAP in NMDC, Corporate HRD is working on the SAPLearning Solution Module which paves the wayfor this development and delivers high-qualitytraining and development programs that arescalable, flexible, and cost-effective. They canalso provide valuable data and insights to helporganizations continuously improve their trainingprograms and drive business success and opensup new learning possibilities for learners,trainers, companies, and educational institutions.
In NMDC, SAP Digital initiatives are extremely important for learning and development, as theyhelp in delivering training programs moreefficiently and effectively.
19.0 VIGILANCE
Vigilance department has taken several initiatives during the year. Emphasis was laid on adequatechecks and balances in the form of well-definedsystems and procedures.
Various sensitising programmes were conducted for awareness on vigilance matters for theemployees of the Corporation like:
I. Interactive session, talk by Shri K.RSingh,Director (Procurement Policy Division), Dept,of Expenditure, Ministry of Finance, NewDelhi on Recent developments in PublicProcurement Policy and challenges ahead on
03.09.2022.
2. Interactive session, talk by Shri M.Srinivas,Director (Vigilance)-Engg., Ministry ofRailways, New Delhi on Vigilance Perspectivein Tenders and Contracts on 14.09.2022.
3. Interactive session, talk by Dr. UpenderVennam, IPoS, CVO, BDL, Hyderabad on
15.10.2022 from 10:30 am to 01:30 pm on Training for Inquiry Officer and PresentingOfficer.
4. Interactive session by Shri Prakash Mirani, JS& Addl. CEO, GeM, Ministry of Commerce &Industry, New Delhi on 24.02.2023 on GeMContracts & Management with focus onCustomized bids.
The vigilance functionaries at the projects have conducted regular training classes forthe employees on vigilance matters.
Executives of the Vigilance Department have attended training/workshops organized inIndia.
1. Officers have been imparted training on"Vigilance course" during September-2022and February-2023 at CBI Academy, NewDelhi.
2. Officers have been imparted training on"Preventive Forensics" at National ForensicScience University, Gandhinagar duringOctober-2022.
3. Officers have been imparted training on"Contract Labor Payment related issues andChallenges" during March-2023.
The systems and procedures including the document handling, maintenance of records ismaintained to ensure that the VigilanceDepartment is conforming to the QualityManagement Systems as per ISO 9001:2015Standards. Vigilance Department in NMDC hasbeen upgraded to ISO 9001:2015 standards ofQuality Management System (QMS) for whichM/s Vexil Business Process Services PrivateLimited, Delhi was engaged for routinesurveillance audits and Quality Certification.
During the year (April 2022 - March 2023), 100 Surprise checks, 72 Regular inspections, 58 FilesStudy, 16 CTE Inspections, 18 Audit Paras studyare conducted by Vigilance Department.
Complaints received were taken up for investigation and necessary suggestions forsystem improvement/ disciplinary actionwherever required were recommended.
A total of 80 complaints were received through various source information (2 of PI DPI, 4 of CVC-NA, 1 of CVC-IR, 4 of MoS, 2 of CBI & 67 ofOthers) during the period which werehandled/disposed of as per CVCguidelines/complaint handling procedure.
E-Platform:As part of the implementation of "Leveraging of Technology for transparency" inall the transactions, details of contractsconcluded above Rs. 10 lakhs, all works awardedon nomination basis, single tender basis aboveRs. 1 lakh, information regarding bill paymentsto the contractors, etc. are provided on thecompany's website. Vigilance department madeall out efforts for E-Procurements through onlinee-procurement platforms like MSTC, GeM etc.and it has now been ensured at NMDC that alltenders of value 2 lakhs and above shall befloated / issued through E-Procurement platform.In this regard, Vigilance dept, is regularlycreating awareness by intimating fresh guidelinesissued by statutory authorities / agencies andadvising/ involving the concerned departmentsfor compliance.
NMDC has adopted theIntegrity Pactsince November 2007. As per the suggestions given byVigilance Department, the threshold value hasbeen decreased to 1.0 Crore w.e.f. 07.09.2018for both Procurement and Contracts as againstthe earlier threshold limit of Rs. 20 crores in caseof Civil works and Contracts and Rs. 10 crores incase of Procurement on approval of NMDCBoard. The Integrity Pact has been entered into in191 contracts with a value of Rs. 1,698.23Crores during the period, April 2022-March2023. All the contracts wherein the Integrity Pactwas to be signed as per the threshold limit wasadhered to and more than 90% of the totalvalues of the contracts are covered underIntegrity Pact.
As a part of preventive checks, a study on implementation and applicability of "IntegrityPact (IP)" in NMDC inline with the latest StandardOperation Procedure issued by CVC (vide
circular no. 05/01/22 dated 25.01.2022), was carried out at Vigilance Department at HO.Certain points of CVC circular no. 05/01/22dated 25.01.2022 were not incorporated inexisting IP format of NMDC and CMM-2016, aresuggested for incorporation and be updated inIntegrity Pact format provided in both ContractManual and Materials Management Manual.
To ensure transparency in vigilance works, necessary action has been taken for rotation /repatriation of vigilance officers, and forinducting of new officers in Vigilance departmentfor compliance of CVC guidelines and 6 Officershave been inducted in June-2022 and 4 officershave been repatriated to their parentdepartment. Identification of Sensitive Posts hasbeen carried out on 01.10.2022. The rotationaltransfer of officers of other departments was alsoeffected in compliance of CVC guidelines and atotal of 112 officers were rotated / transferredduring 2022-23.
TheQuarterly Review-cum-Coordination meetingof the Vigilance dept, with CVO washeld in June 2022, in September 2022, inNovember 2022, December 2022 & in February2023. The said meeting was attended by all theVigilance Officers. Project-wise presentationswere made and matters pertaining to vigilanceinspections and system improvementsrecommended / implemented etc. werediscussed. Few common matters were alsodiscussed in open-house wherein all VOsexchanged their views and gave valuablesuggestions.
In pursuance of CVC directions / guidelines received during the month of August/ September2020, a 02 days module and Road map forimparting training on preventive vigilanceseparately for Induction level (new entrants) andMid-career level Executives were drawn up andwas integrated with our HRD's regular trainingplan. A total of 43 trainees / new inductees werecovered for the Induction level training and186trainees / mid-level executives were coveredunder mid-career level training in thetraining programmesconducted under thePreventive Training Module as suggested by CVC.
With the intervention of Vigilance Dept., Circular ondetailed revised guidelines & procedureregarding storage & handling lossfor issue ofHSD & MShas been issued on 19.10.2022.
It has been informed & discussed during Structured Meeting of CVO with CMD on
27.09.2022, 28.12.2022 and 18.02.2023 toupdate Contract Manual and MaterialsManagement Manual, etc. in-line with theManuals released by the Department ofExpenditure on 1stJuly 2022.
Ethical and transparent practices in any organization are as essential as generatingrevenue, and neither of these can be sacrificedfor the other. Hence, it is imperative to ensurethat the decisions taken are not only fair, but alsoappear to be fair. To accomplish this, it is vital tohave written down procedures and also to ensurethat they are being followed. For the purpose,NMDC Vigilance Manual has been releasedon 2ndJune 2022.This first edition of theNMDC Vigilance Manual attempts to provideinformation on essential guidelines andprocedures established by the Central VigilanceCommission and other organizations involved inanti-corruption activities.
With the purpose of enhancing transparency and accountability among the employees, to stress onthe importance of the monitoring system and theprevalence of the noteworthy practices in ourorganization, 2 Editions of Subodh have beenreleased on 11thNovember 2022 and 18thFebruary 2023.
Vigilance Portal:NMDC's vigilance department has taken the initiative to implement an OnlineVigilance Portal in an effort to digitalize existingprocesses, in order to adhere to NMDC's digitalmission and to address existing flaws. It willimprove transparency, accountability and dataintegrity. NMDC Vigilance portal is an end-to enddigital platform for all Vigilance functions fromlodging of a complaint to till its logicalconclusion. This will also have provisions forrecording various preventive, punitive andadministrative matters of vigilance department.This will be a digital repository for all vigilanceactivities. This will also provide data analytics like
age-wise pendency and status of complaints; department wise, area wise complaint/preventivecheck undertaken; frequency of complaint fromsame person or against same officials etc. Thiswill help in preparation of proactive vigilanceaction plan and thrust areas on quarterly/annualbasis.
The portal has been envisaged to include following modules:
1. Online Complaint Management Module
2. Preventive Checks Module
3. DE Cases Monitoring Module
4. Online Vigilance Clearance/status Module
5. MIS reporting Module
6. Management Dashboard
7. Digital Knowledge Base
Structured Meetingswith CMD have been regularly conducted on 29.06.2022,
27.09.2022, 28.12.2022 & 18.02.2023. BoardMeeting was conducted on 13.10.2022.
System improvements suggested for Implementation during 2022-23:
As per the Action Plan of the Vigilance dept, for the year 2022-23, Surprise and Regular checkswere conducted besides the study of files.
Irregularities and omissions under the provisions of the rules were identified and improvements inthe systems were suggested wherever required.Totally, 54 System Improvement suggestions wererecommended for implementation.
Some of the initiatives/system improvements, studies/suggestions/recommendations madeduring the period are briefed as below: -
1. Procurement of Compressor Oil Cooler(COC) Assembly,a study on observations ofCAG Audit Report-2022 was carried out byVigilance dept. Bacheli, which mainly pointed out
the non-availability of the equipment due to inordinate delays in procurement. CompetentAuthority had approved the following Systemimprovements:
a) Inordinate delays should be avoided forefficient running of the machinery.
b) The decision to process the Procurementthrough OTE or LTE or STE should be takenby the indenter based on the required item,available details of the required item.
c) The negotiation should be exception ratherthan the rule and may be resorted to only inexceptional circ*mstances.
2. Procurement of PPE kits at BacheliComplex,a detailed study was carried out byVigilance dept., Bacheli. Competent Authorityhad approved the following Systemimprovements:
a) The purchase based on the sample should beavoided. The procurement based on thesample will not give an equal opportunity toall the prospective bidders and there will bescope for interpretation.
b) To issue proper guidelines for the time-framefor acceptance / rejection of the material.
3. Procurement of Steel Cord Belt,a studywas carried out by Vigilance dept, at HO whichmainly highlighted the reason for procurement ofthe item on Single Tender Enquiry(STE)/Nomination basis. Competent Authorityhad approved the following Ssystemimprovements:
a) Inordinate delays should be avoided forefficient running of the machinery.
b) The organization should develop greaternumber of sources for the continuity of thesupplies, for the price stability etc.
c) The organization may develop a testbedcomprising the toughest parameters fortesting the product at the project sites. Thiswill give an edge for the organization as it ispossible to test the item before put into theuse.
4. Accumulation of Non-Moving Inventory, a
study on Audit para was carried out by Vigilance dept. Kirandul. Competent Authority hadapproved the following System improvements:
a) There should be regular review mechanism &survey of non-moving items at each of theProduction Unit of NMDC and provisionthrough ERP for the same.
b) The Planning and Coordination Departmentshould forecast the requirement and indentcorrectly.
c) Materials Management Department shouldenter into Rate Contracts or Long TermContracts, for Just-in-time concept for thereceipt of the material, as and when required.
VIGILANCE AWARENESS WEEK:
As per CVC Circular No. 20/09/2022 dt. 08/09/2022, Vigilance Awareness Week-2022was observed at NMDC Limited from 31st Oct,2022 to 6th Nov, 2022 on the theme of VAW-2022, i.e., "Corruption free India for adeveloped Nation".
On the Inaugural day of VAW-2022, Integrity Pledge was administered to the employees ofNMDC at HO by CVO and by respective ProjectHeads/Regional Managers at Projects and ROs.Hyperlink for taking e-pledge was also providedat NMDC's website.
During observance of Vigilance Awareness Week-2022, following Participative Vigilance activities were conducted:
1. Address by Eminent Speaker & Director, ShriA.S.Rajan, Sardar Vallabhbhai Patel NationalPolice Academy, Hyderabad on 31.10.2022at 03:30 pm on the theme of VAW-2022,Corruption Free India for Developed Nation.
2. Vendors Meet was organized on 02.11.2022;67 Vendor Rep.s attended, their views andgrievances were discussed.
3. Interactive session by CTE, Shri Ashok Kumar,CVC, New Delhi on 04.11.2022 at 10:30am on Procurement of Goods, Services andWorks.
Various activities including awareness programmes and prescribed individual/inter-departmental competitions like Slogan writing,Essay writing, Elocution, Quiz competition, posterdrawing competition on the VAW theme werearranged for the employees during the Vigilance
Awareness Week-2022. Awareness and sensitization programmes, Gram Sabhas &Grievance redressal camps were conducted atproject level for other stakeholders also as a partof VAW-2022. For propagation of VAW-2022theme, wide display of banners & posters,newspaper release/teasers and extensive use ofsocial media was undertaken. An article on'Ethical dilemma in Public Procurement-APragmatic Approach at NMDC' by CVO, NMDCwas published in CVC's News Letter 'VIGEYEVANI' during the campaign period in Oct, 2022edition. An In-house journal of NMDC Vigilancedept., "SUBODH" was also released during theVAW-2022 week by CMD, NMDC Ltd. Variouscompetitions for school/college children wereconducted at Head Office & all Projects. All thewinners/participants of variousactivities/competitions were given away the prizesduring the Valedictory Function held on theconcluding day of VAW-2022 on 5th Nov, 2022at HO and all Projects.
During the observance of VAW-2022, all the precautions as per COVID-19 guidelines werestrictly followed.
During VAW-2022, Land records have been examined exhaustively in mission mode and allrecords are available with EstateDept./Respective Project.
20.0 DIRECTORS' RESPONSIBILITYSTATEMENT
Pursuant to Section 134(5) of the Act, the Board of Directors, to the best of its knowledge andability, confirm that:
i) in the preparation of the annual accounts, theapplicable accounting standards have beenfollowed and there are no materialdepartures;
ii) ii. they have selected such accounting policiesand applied them consistently and madejudgments and estimates that are reasonableand prudent so as to give a true and fair viewof the state of affairs of the Company at theend of the financial year and of the profit ofthe Company for that period;
iii) they have taken proper and sufficient care forthe maintenance of adequate accountingrecords in accordance with the provisions ofthe Act for safeguarding the assets of theCompany and for preventing and detectingfraud and other irregularities;
iv) they have prepared the annual accounts on agoing concern basis;
v) they have laid down internal financialcontrols to be followed by the Company andsuch internal financial controls are adequateand operating effectively;
vi) they have devised proper systems to ensurecompliance with the provisions of allapplicable laws and that such systems areadequate and operating effectively.
Based on the framework of internal financial controls and compliance systems established andmaintained by the Company, the work IntegratedAnnual Report 2022-23 Directors' Report | 86performed by the internal, statutory andsecretarial auditors and external consultants,including the audit of internal financial controlsover financial reporting by the statutory auditorsand the reviews performed by management andthe relevant board committees, including theaudit committee, the Board is of the opinion thatthe Company's internal financial controls wereadequate and effective during FY 2023.
21.0 DECLARATION ON MEETING THECRITERIA OF INDEPENDENCE AS PER THECOMPANIES ACT, 2013 AND SEBI (LISTINGOBLIGATIONS AND DISCLOSUREREQUIREMENTS) REGULATIONS, 2015.
The Independent Directors have given a declaration on meeting the criteria ofindependence as stipulated in Section 149(6) ofthe Companies Act, 2013 and Regulation 25(8)of SEBI (Listing Obligations and DisclosureRequirements) Regulations, 2015 in the FY 2022-23.
22.0 COMPANY'S POLICY ON DIRECTORSAPPOINTMENT AND REMUNERAITON
All Directors are appointed by Govt, of India including fixation of their remuneration.
23.0 NUMBER OF BOARD MEETINGS HELD
During the year under review 9 meetings of the Board were held. For further details, reference
may kindly be made to Corporate Governance Section of the Annual Report.
24.0 NMDC STRATEGIC MANAGEMENTPLAN (NMDC VISION 2025).
A long-term strategic management plan (SMP), 'Vision 2025' has been formulated whichenvisages an iron ore production capacity of 67MTPA. This expansion plan includes brownfieldexpansion of existing mines and developinggreenfield mines in partnership with ChhattisgarhMineral Development Corporation. A jointventure of NMDC & CMDC (NCL) is in process ofstarting operations from Dep-13 Iron Ore Minein the Bailadila Region. The Government ofChhattisgarh has notified the allocation of Dep-4to NMDC in Sep'19 for prospecting and miningoperations.
India is presently the world's second-largest producer of crude steel. In FY'23, the productionof crude steel stood at 125.5 MT with a growth of4.8% over the previous year. The growth in theIndian steel sector has been driven by thedomestic availability of raw materials such asiron ore and cost-effective labour. Consequently,the steel sector has been a major contributor toIndia's manufacturing output.
The Government of India announced a production-linked incentive (PLI) scheme forspeciality steel. The scheme is expected to attractinvestment worth ~Rs. 300 billion (US$ 3.6billion) and expand speciality steel capacity by 25million tonnes (MT) to 42 MT by FY'28. NMDC isalso reviewing its long-term plan based on theincrease in demand & growth in the iron & steelindustry after the pandemic. As per NationalSteel Policy, the country has envisaged increasingits steel production capacity to 300 MTPA byFY'31. The wide range of continuinginfrastructure projects could support growth insteel demand to reach our envisaged target ofper capita steel consumption of 160 Kg by FY'31in the long term. NMDC is actively pursuing anIron Ore Production ramp-up plan to furtherincrease its iron ore production capacity to 100MTPA by FY'30.
In FY'23, the Company has progressed significantly on various activities to enhance itsproduction capacity. The augmentation of
Capacities of crushing and screening plants at Bailadila and Donimalai is in process andvarious statutory clearances are being processed.There is also progress in the construction of thefifth line in Screening Plant Dep-5 & up-gradation of the downhill conveyor system inBIOM Bacheli Complex. Rapid Wagon LoadingSystem (RWLS-I) and New Screening Plant (SP-III)at BIOM Kirandul Complex are underconstruction. Further, NMDC is planning toenhance the EC capacities of mines in the miningcomplexes of Bailadila and Donimalai.
To augment the evacuation capacity from the Bailadila sector, many projects & schemes arebeing taken up like doubling of KK line,Rowghat-Jagdalpur line, Slurry Pipeline, etc.Doubling of KK line is being executed by Railwaysas deposit work is in full swing and twocompleted sections have been opened for traffic.Out of 150 km of planned doubling of railwayline, 79% of work has already been completed &the project is likely to be completed by FY'25.
The completion of this project will augment the evacuation capacity of the Bailadila sectorthrough the Railway line from 28 MTPA to 40MTPA.
Activities for Phase-1 of Slurry Pipe Line including 2 MTPA capacity Ore Processing Plant (OPP) atBacheli, 15 MTPA capacity Slurry Pipeline System(130 km) from Bacheli to Nagarnar and 2 MTPAcapacity Pellet Plant at Nagarnar, have also beeninitiated. The project is likely to be completed inFY'26.
Ministry of Coal has allocated two Coal Blocks namely Tokisud North Coal block & Rohne CoalBlock on 1 7thMarch 2020 for commercial sale &captive purposes. NMDC has appointed MDOfor Tokisud North Coal Block and plans to startit* operations in FY'24.
Besides the expansion plan, the SMP also envisaged the introduction of systemicinterventions in six strategic transformation areas- Business, Operations, Sustainability, CapitalProjects, Human Resource and IT. NMDC hasimplemented an ERP system across all projects &steel plant in FY'21, License-to-Operate (thecomputer-based model in which all the statutoryapprovals will be brought under one umbrella).
Implementation of Mines Transport Surveillance System (MTSS)- Weighbridge automation/VirtualFencing/ Geo-Fencing/ GPS/ Proximity WarningDevice for dumpers/ CCTV Surveillance/ WirelessNetworking has been completed at Donimalai.NMDC has further taken initiative to venture intothe fleet management system and it is beingimplemented in Bailadila Sector. Efforts are beingmade to install an automatic (robotic) sampling& analysis system, vision enhancement system,conveyor monitoring system and 3D Volumetricand Laser Scanner System to enhance its digitalstrength.
NMDC is publishing Sustainability Report as per the Global Reporting Initiative (GRI) Standards,capturing initiatives taken by NMDC over theyears in Economic, Environmental and Socialaspects. As the world is now traversing moreuncertainty than ever, NMDC is focusing onbuilding sustainable and resilient businesses tosurvive in the long run and to make a meaningfulcontribution to the battle against climate changethrough an increasing investing environment,social and governance (ESG) initiatives. ThreeMines of NMDC has been Awarded 5 Star Ratingby the Ministry of Mines.
25.0 DETAILS OF DIRECTORS OR KMPAPPOINTED OR RESIGNED DURING THEYEAR.
The following Directors ceased to be Directors on the Board of the Company:-
upto | |
(i)Shri Sumit Deb | 28.02.2023 |
ii) Shri Somnath Nandi, Director (Technical) | 31.12.2022 |
iii Smt. Rasika Chaube | 30.06.2022 |
The following Directors were appointed on the Board of the Company:- | |
Date of Appointment | |
i) Shri Abhijit Narendra, Govt. Nominee Director | 09.02.2023 |
ii) Shri V. Suresh, Director (Commercial) | 01.03.2023 |
iii) Shri Vinay Kumar, Director (Technical) | 19.05.2023 |
The Board places on record its deep appreciation for the valuable contribution made by Shri SumitDeb, Smt. Rasika Chuabe and Shri SomnathNandi during their tenure on the Board of theCompany.
26.0 AUDIT
a. Statutory Auditors
On the advice of the Comptroller and Auditor General of India, New Delhi, your Companyappointed the following firms of CharteredAccountants as Statutory Auditors of theCompany for the year 2022-2023:
SI. No. | UnitStatutory Auditors |
1 Head Office R & D CenterSIU & Consolidation | M/s SAGAR & ASSOCIATES Chartered AccountantsHouse No.6-3-244/5Saradadevi Street,Premnagar, HyderabadTelangana: 500 004 |
2 Kiradul Complex Bacheli ComplexNISR Jagdalpur& Vizag Office | M/s AGASTI & ASSOCIATES Chartered Accountants334/24,Gurunanak NagarDurg, Chhatishgarh:- 491 001 |
3 Donimalai Complex | M/s YOGANANDH & RAM LLP Chartered AccountantsThird Floor, Shri NarasimhaNilaya No. 263/1, Second Cross, T. Mariappa Road, Second Block,Jayanagar, BengaluruKarnataka : 560 011 |
4 Panna Project | M/s Neeraj Prakash & Associates Chartered Accountants 328/208, LukerganjPurosottam KunjNear Dr. Banerjee,Allahabad Uttarpradesh : 211 001 |
b. Cost Auditors
M/s B Mukhopadhyay & Co,
Cost Accountants B 20, Amarabati,
Sodepur
Kolkata - 700 110.
c. Secretarial Auditors
M/s D. Hanumanta Raju & Co.
Company Secretaries B-l3, FI, RS. NagarVijaynagar ColonyHyderabad - 500 057
27.0 IMPLEMENTATION OF RIGHT TOINFORMATION ACT, 2005
All the provisions of the RTI Act 2005 are being complied with by the Company. In order toensure timely disposal of RTI applications, PIOshave been appointed in each of NMDC's Units.A close monitoring of the RTI applicationsreceived is done to ensure that the replies aresent in time. Transparency Audit /Third partyAudit towards proactive disclosure under RTI Act,2005 has been conducted.
The details of RTI applications received in Head Office and all the Units of the Company duringthe period 01.04.2022 to 31.03.2023 are asfollows:
Opening balance ason 01.04.2022 | Applications received duringthe year | Information Provided/denied/ forwarded | Balance as on 31.03.2023 | |
Online applications | 24 | 415 | 423 | 16 |
Offline applications | 04 | 169 | 162 | 11 |
TOTAL | 28 | 584 | 585 | 27 |
28.0 DETAILS OF SIGNIFICANT ANDMATERIAL ORDERS PASSED BY THEREGULATORS OR COURTS OR TRIBUNALSIMPACTING THE GOING CONCERN STATUSAND COMPANY'S OPERATION IN FUTURE -NIL
29.0 AWARDS RECEIVED BY THECOMPANY
The details of awards received by the Company are as follows: -
• NMDC received the Public Relations Awards2022 conferred by Public Relations Society ofIndia (PRSI), winning the first position in fourcategories i.e. Corporate Website, AnnualReport, Layout and Design of Newsletter andCSR Corporate Video on 21 st Apr'22 atHyderabad.
• NMDC won the Gold Award in the categoryof social responsibility for the project'Promotion of Technical Education & SkillDevelopment in Dantewada District throughNMDC ITI Bhansi' and the Silver Award in thecategory of digital inclusion for the 'ProjectKalpataru' for ERP implementation in the 80thSKOCH Summit and SKOCH Awards on 9thApr'22 conducted by SKOCH, New Delhi.
• Donimalai Iron Ore Mine has received"PLATINUM AWARD" Under Apex India BestFIRE & SAFETY MEASURES Award 2022 on22ndAug'22.
• Kirandul Iron ore Mine has received "CSRAward 2022" for its strong focus andcontribution to education by 'GreentechFoundation' in the 9* CSR India summit andAwards ceremony held on 24th Aug'22 atGuwahati.
• Kumarswamy Iron Ore Mine has received"Outstanding Achievement" in EnvironmentProtection by 'Greentech Foundation' on 24*Aug'22 at Guwahati.
• NMDC received the Rajbhasha Kirti Awardfor 2021 -22 at the Hindi Diwas Samarohorganised by the official languagedepartment, Ministry of Home Affairs,Government of India on 14* Sep'22 at Surat.
• NMDC received the National Awards forExcellence in CSR and Sustainability bestowedby ET Ascent on 21rfSep'22 at Bengaluru.
• NMDC recognized as the 'Best PSU1in otherMinerals & Metals (Central PSUs) category byDun & Bradstreet during its 'PSU andGovernment Summit 2022' in the publication'India's Top PSUs 2022' released on 29*Sep'22.
• NMDC received following awards from TownOfficial Language ImplementationCommittee, Hyderabad-Secunderabad on28* Oct'22.
o First Prize amongst mid-sized PSUs for implementation of Official Language
o Best Magazine award to our Hindi Magazine "Khanij Bharati" in E-magazines categoryamongst PSUs in Hyderabad
o Seven Officers received various prizes in Hindi Competitions held by TOLIC at TownLevel.
• NMDC bagged the Champion of ChampionsAward, sweeping the 16th PRCI GlobalCommunication Conclave 2022, to bringhome fourteen Corporate CommunicationExcellence Awards, i.e. Gold awards for MostResilient Company of the Year; InternalCommunication Campaign, CorporateBrochure; Best PSE Implementing CSR. It wonSilver Awards in the categories of Best Use ofCSR for Childcare; Corporate CommunityImpact; Best Corporate Event; Unique HRInitiatives; Annual Report; Arts, Culture &Sports Campaign and Bronze Awards forVisionary Leadership; Website of the Year;
Innovative Environmental Program and Consolation Award for Best Use of SocialMedia. The awards were organised by PublicRelations Council of India (PRCI) in Kolkataon 14* Nov'22,
• NMDC won the coveted IEI (Institution ofEngineers, India) Industry Excellence Award2022 for its outstanding businessperformance at the inaugural session of the37th Indian Engineering Congress inChennai on 16* Dec'22.
• NMDC won 7 awards at the Public RelationsSociety of India (PRSI) National Awards 2022for its Public Relations and CSR effortstowards building an Atmanirbhar Bharat inBhopal on 25* Dec'22.
• NMDC swept five awards i.e. PSU LeadershipAward 2022, CSR Leadership, CSRCommitment (Overall), HR Excellence(Overall) and Nation Building at the"Governance Now 9th PSU Awards" held inNew Delhi on 16*Feb'23.
• NMDC stall won 2ndprize in the annualconference & awards function of the IMEJournal, Bhubhabneswar at AKS university,Satna on 25* Feb'23.
• NMDC's iron ore mines - Kirandul Deposit -14 MZ, Kirandul Deposit - 14, NMZ andBacheli Deposit - 5 have been awarded 5Star Ratings by the Indian Bureau of Mines(IBM) in Nagpur on 2ndMar'23.
30.0 VIGIL MECHANISM
NMDC being a PSU, the guidelines of Central Vigilance Commission (CVC) are applicablewhich provides adequate safeguard againstvictimization of the employees. The Board ofDirectors at its 451 * meeting held on 20.09.2012approved the internal Whistle Blower Policy ofNMDC. NMDC has effectively implemented itsinternal Whistle Blower Policy under CVO NMDC,the designated Nodal Officer for the purpose,which has been uploaded in the website of thecompany under the linkhttps://www.nmdc.co.in/cms-admin/Upload/Policies
Document/405f4d8884cb49bdbf42fc548d4edd a2 20210920061059Q02.Pdf
31.0 DETAILS IN RESPECT OF FRAUDSREPORTED BY AUDITORS UNDER SECTION143(12) OTHER THAN WHICH AREREPORTABLE TO CENTRAL GOVT- NIL
34.0 FORMAL ANNUAL EVALUATION OFBOARD, COMMITTEES AND INDIVIDUALDIRECTORS.
NMDC being a Government Company, the terms and conditions of appointment and remunerationof Functional Directors and IndependentDirectors are determined by the Governmentthrough its administrative Ministry, Ministry ofSteel.
In terms of notification dated 5thJune, 2015 and 13thJune, 2017 issued by Ministry of CorporateAffairs, Govt, of India, Government Companieshave been exempted from applicability of someof the provisions /sections of the Companies Act,2013 inter alia Sub-sections (2),(3) & (4) ofSection 178 regarding appointment,performance evaluation and remuneration.
35.0 IMPLEMENTATION OF RISKMANAGEMENT POLICY
The Board at its 442ndmeeting held on 19.01.2012 has approved the Risk Assessmentand Risk Mitigation Policy / Enterprise RiskManagement (ERM) of the Company.
Accordingly, the Company has constituted a Board level Risk Management Committeecomprising of Functional Directors (excludingCMD) and one Independent Director. Theconstitution of the Committee is as under:-
Risk Management Committee
1) Shri Vishal Babber, Independent Director
2) Director (Finance)
3) Director (Commercial)
4) Director (Production)
5) Director (Personnel)
6) Director (Technical)
The Company as a part of its current Risk Management Policy has identified top Risks ThatMatters (RTMs) and documented Mitigation Plan /Strategy for the same
During the year under review, three meetings of the Board level Risk Management Committee
were held.
36.0 DIVIDEND DISTRIBUTION POLICY
The Board of Directors has approved Dividend Distribution Policy which has been uploaded inthe website of the company under the linkhttps://www.nmdc.co.in/cms-admin/Upload/Policies-
Document/ae4bb5f07e7e4654a3f881ccec7b91 63 20210920060806207.pdf
37.0 ERP Implementation, Digitalization andIT Infrastructure
In the process of continuous improvement in Digitalisation and Innovative activities, yourcompany has rolled out Dash Boards for thefunctionalities like Material Module, QualityManagement, Human Resource Management &Environment, Health and Safety etc. LaunchedEx-employee Portal & Vigilance Complaint Portal.
As a part of automated data capturing on real time basis, Belt Scales weightometers of Plants inDonimalai Mines, Kumaraswamy Mines, Dep-10&11A of Bacheli Mines are integrated with SAPIntegration of Automated Data Capture for othermines is under progress and will be done shortly.
Facial Biometric Recognition System for attendance has been launched also in Kirandul,Bacheli & Donimalai and integrated with SAP
Towards Revamping of IT Infrastructure & Technology refresh for providing seamless backup and support to ERP and other Future DigitalInitiatives, an MOU entered with RailTel forImplementation of IT Network Infrastructure on
01.12.2022. The age old, redundant networkinfrastructure will be replaced shortly.
Further automations for digitalisation environment like implementation of VendorInvoice Management System, development of E-Measurement Book, Integration of SAP with FleetManagement System, Hospital ManagementSystem are in process and will be completedshortly
37.1 COMPUTER & INFORMATIONTECHNOLOGY INITIATIVES
1. A Facial Recognition System based attendance recording system has been
implemented at all the units of NMDC. This system is interfaced with SAP for preparationof paydata used for payroll.
2. Reward Point Management System along withIR Clearance module has been made live atBacheli, Kirandul and Panna. This systemautomates and digitizes the process of issueof manual food coupon being issued tocontract labour.
3. A work order has been issued to M/s.YROSystems Pvt. Ltd, Chennai for implementationof Hospital Management System (HMS) at allproject hospitals of NMDC. Implementationwork is in progress.
4. Technical support is being extended to theteam for implementation of FleetManagement System (FMS) at BailadilaComplex.
5. Internet leased lines at Bacheli andDonimalai have been upgraded to 200 Mbpsand Kirandul to 300 Mbps respectively.
6. An MOU has been signed with M/s.Railtel forICT and Digital Transformation Services inNMDC.
38.0 REPORT ON MANAGEMENTDISCUSSIONS AND ANALYSIS
A Report on Management discussions and Analysis as required in terms of Regulation 34 ofSEBI (Listing Obligations and DisclosureRequirements) Regulations, 2015 is atAnnexure-I.
39.0 REPORT ON CONSERVATION OFENERGY, TECHNOLOGY ABSORPTION,FOREIGN EXCHANGE EARNINGS ANDOUTGO UNDER THE COMPANIES(ACCOUNTS) RULES, 2014
Annexure-ll.
40.0 CORPORATE GOVERNANCE
Report on Corporate Governance is at
Annexure-lll
41.0. EXTRACT OF ANNUAL RETURN UNDER SECTION 92(3) OF THE COMPANIES ACT,2013.
As required under the provisions of the Companies Act, 2013, the Annual Return ishosted on the Company's website and can beaccessed from the linkhttps:www.nmdc. .co. in/investors/financial-details/annual-return
42.0 BUSINESS RESPONSIBILITY &SUSTAINABILITY REPORT
In compliance with Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements)Regulations, 2015, Business Responsibility &Sustainability Report (BRSR) is atAnnexure-IV.
43.0 SECRETARIAL AUDIT REPORT
Secretarial Audit Report in Form No.MR-3 pursuant to Section 204(1) of the Companies Act,2013 and Regulation 24A SEBI (ListingObligations and Disclosure Requirements)Regulations, 2015 is atAnnexure-V.
44.0 GLOBAL COMPACT -COMMUNICATION ON PROGRESS
Report on compliance with principles of Global Compact is atAnnexure-VI.
45.0 STATEMENT CONTAINING SALIENTFEATURES OF THE FINANCIAL STATEMENT /HIGHLIGHTS OF PERFORMANCE OFSUBSIDIARIES / ASSOCIATE COMPANIES /JOINT VENTURES (FORMAOC-1) ISENCLOSED AT ANNEXURE-VII.
46.0 REPORT ON CSR ACTIVITIES
Report in terms of the Companies (Corporate Social Responsibility Policy) Rules, 2021 is atAnnexure-VIII.The Report on CSR inter alia,outlines details of CSR Policy and various CSRinitiatives of the company for the year underreview.
47.0 RECOMMENDATIONS MADE BY THECOMMITTEE ON PAPERS LAID ON THETABLE (RAJYA SABHA) IN ITS 150TH REPORT- DETAILS TO BE PROVIDED IN THE ANNUALREPORT.
Details to be provided in the Annual Report in terms of recommendations made by theCommittee on Papers laid on the Table (RajyaSabha) in its my Report is enclosed atAnnexure-IX.
48.0 ACKNOWLEDGEMENT
Your Directors gratefully acknowledge the support, cooperation and guidance received from the Ministry of Steel, Ministry of Mines, Ministry of Forests & Environment, Ministry of Corporate Affairs, SEBI, DIPAM andother Departments of Government of India and the State Governments of Andhra Pradesh, Chhattisgarh,Karnataka, Madhya Pradesh, Jharkhand and Telangana.
Your Directors acknowledge the support extended by the valued and esteemed international and domestic customers, Shareholders stakeholders, MMTC, Chennai Port Trust, Visakhapatnam Port Trust, Railways andother Departments of the Central and State Governments. We believe that our long-term success isdependant on our domestic customer relationship and responsiveness. We will do everything possible toprovide our customers better, timely and value added services.
The success of your Company is due to the commitment and dedicated efforts of the managers and employees at all levels. Your Directors place on record their appreciation and also acknowledge the supportand co-operation of All India NMDC Workers' Federation and their members for the smooth functioning ofthe Company's operations.
